Market Insights > First Look

Oil Extends Rally, Middle East Unrest Adds Risk Premium

Oil extends gains for a second session after OPEC+ quota boost
- WTI prompt-month rose $0.66 to $62.92/Bbl Tuesday morning (7:45 AM CT)
- OPEC+ will return 137 MBbl/d in October, a much smaller step-up than the 547 MBbl/d seen in prior months
- Trafigura Chief Economist Saad Rahim said low inventories in European pricing hubs and continued Chinese stockpiling have supported prices
- Bloomberg economists warned that the additional supply could eventually push crude toward $55
Crude supported by Middle East risk premium after Doha blast
- Axios reported the explosion was an apparent assassination attempt targeting Hamas officials

Regional Market Insights

Updated regularly with the most important market moves and outlooks.

Natural gas is trading higher, extending gains from yesterday
- October Henry Hub has rallied about 39c from the lowest levels of August, with prices continuing to trade above $3/MMbtu
- Gas production moved lower today, with output near 106.3 Bcf/d, according to data from S&P
FERC preparing environmental impact statement for Southeast gas projects (S&P)
- Federal regulators are preparing environmental impact statements for two large projects developed by Kinder Morgan
- The South System Expansion project will add 1.3 Bcf/d of capacity to the Southern Natural Gas pipeline between Mississippi and Georgia
- The Mississippi Crossing project will add 2.1 Bcf/d of new capacity between Mississippi and Alabama on Tennessee Gas pipeline