The WTI prompt-month contract fell $0.13 to $57.47/Bbl on Friday morning (8:15 AM CT)
Global equity markets approach record highs following the Fed’s rate cut and its constructive outlook on the US economy. Risk sentiment improved broadly, though crude remains under pressure amid expectations for a sizable 2026 surplus
The US expanded sanctions on Venezuela, targeting relatives of President Nicolás Maduro and six crude tankers after authorities seized a supertanker off the country’s coast earlier this week
Washington is intensifying its pressure campaign on Caracas, aiming to restrict oil revenue flows to the Maduro government, similar to its recent actions against Russian firms such as Lukoil and Rosneft intended to curb Moscow’s wartime energy income
US production to decrease in 2026 (EIA)
The EIA’s latest Short-Term Energy Outlook projects U.S. crude output to average 13.5 MMBbl/d in 2026, roughly 100 MBbl/d below 2025 levels
The slight pullback marks the first decline after four consecutive years of growth
Production is expected to rise by 0.3 MMBbl/d in 2024 and 0.4 MMBbl/d in 2025, driven primarily by continued strength in the Permian Basin
Natural gas continues to fall, with January nearing $4/MMbtu
The January Henry Hub contract is trading lower again today, with the contract down more than $1 this week and nearing the $4/MMbtu level
Weather forecasts continue to look materially warmer than the ten-year average starting December 17 and going through the end of the two-week forecast period
Yesterday, the EIA reported a -177 Bcf withdrawal from storage, which put the surplus to the five-year average at the lowest level since last spring at +103 Bcf
Congress votes to limit state powers to block pipelines (Bloomberg)
The House voted to limit the ability of states to block planned pipelines as part of a move to overhaul federal permitting of energy infrastructure
The PERMIT act will target part of the Clean Water Act, which is often used to block new pipelines
Permitting is often particularly difficult in the Northeast where several pipelines have been blocked or canceled due to opposition in recent years
Next week, congress will vote on the SPEED act which aims to make it harder for Presidents to block energy-project permits
Get market insights delivered to your Inbox every day!
