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Oil Extends Losses as OPEC+ Meeting Looms; Gas Gains on Midwest Chill

Oil slips despite signs of US-China progress
- The WTI prompt-month contract eased $0.39 to $60.09/Bbl Thursday morning (7:45 AM CT)
- Prices softened following a summit between President Trump and Chinese leader Xi Jinping that delivered progress on key trade issues, though elevated global supply continues to weigh on the market
- Crude remains on track for a third consecutive monthly decline expectations that output increases from OPEC+ and non-OPEC producers will push global supply above demand
  - OPEC+ is set to meet over the weekend, with most analysts anticipating a modest production boost similar to last month’s quota hike of 137 MBbl/d
Indian refiners brace for sharp drop in Russian crude purchases (Bloomberg)
- Three major Indian refiners, responsible for over half of the country’s Russian crude imports, have halted purchases for the coming months, signaling a steep decline in December and January deliveries
- The refiners are preparing for an extended pause and are sourcing alternative supplies from the Middle East and the US to offset the shortfall from Moscow

Regional Market Insights

Updated regularly with the most important market moves and outlooks.

Natural gas trades higher, reversing losses from yesterday
- The December Henry Hub contract is trading close to $3.86/MMbtu, after prices fell yesterday into the expiry of the November contract (8:10 AM)
- Lower-48 gas production has continued to average about 106 bcf/d recently, up from maintenance-driven lows of 104 bcf/d last week, but down from summer highs of 108 Bcf/d
Spot prices rise as cooler weather arrives (NGI)
- Natural gas spot prices in the Midwest and Northeast have risen to seasonal highs this week, as temperatures in the region have fallen, supporting higher gas demand
- Chicago Citygate, Algonquin, and MichCon spot prices all traded above $3/MMbtu in recent days, after trading closer to $2/MMbtu earlier in the shoulder season
- Meanwhile, storage levels in the Midwest and Northeast are at a slight deficit to last year, although above the five-year average