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First Look - Oil Slips on Glut Fears; Gas Finds Bullish Lift

Oil set for monthly loss as glut fears, geopolitics weigh
- The WTI prompt-month contract fell $0.18 to $64.42/Bbl Friday morning (7:45 AM CT)
- Futures extended lower, keeping oil on track for its first monthly loss since April
- Traders remain focused on oversupply risks and shifting flows from Russia as the US pushes for progress in Ukraine talks
- The IEA projects a record glut as OPEC+ continues restoring idle production
India boosts US crude purchases amid Russian scrutiny (Bloomberg)
- Indian state-run and private refiners stepped up buying of US WTI crude this week
- Discounts versus Middle East benchmarks made the grade more attractive, Bloomberg reported

Regional Market Insights

Updated regularly with the most important market moves and outlooks.

Natural gas heads for weekly gain, bolstered by bullish storage report
- The October Henry Hub contract is up more than 15c this week, with prices just below $3/MMbtu (8:15 AM)
- Yesterday, the EIA reported a storage injection of 18 Bcf, which was bullish compared to the five-year average and smaller than anticipated
  - This shrunk the surplus to the five-year average in inventories
Williams moving forward with northeast pipelines (Bloomberg)
- Several northeast pipeline projects planned by Williams Cos. Which have been stalled for years due to permitting issues are now gaining traction
- The Trump administration’s support for gas infrastructure development has created a more friendly environment for pipeline developers, with Williams now confident it will secure the necessary permits
- Despite continued efforts from environmental groups to block northeast pipeline development, Williams is moving forward with the Northeast Supply Enhancement and Constitution pipeline projects
  - These projects should increase deliverability of gas supply into New York