Market Insights > First Look

First Look - WTI heads for weekly loss amid OPEC+ uncertainty

Oil set for weekly loss
- WTI prompt-month futures fell 30c to $58.94/Bbl on Friday morning (7:30 AM CT), putting oil on track for a weekly decline
- A Bloomberg survey shows most traders expect OPEC+ to approve another production increase, though RBC suggests the group may opt for a smaller supply boost instead
- US economic data came in stronger than expected, with April nonfarm payrolls rising by 177,000 versus a 138,000 forecast
Trump moves to ramp up sanctions on Iran (Bloomberg)
- President Trump said he will impose secondary sanctions on any countries or companies that buy Iranian oil, as nuclear talks between the US and Iran stall
- He emphasized that anyone purchasing Iranian oil or petrochemicals will be barred from doing business with the US
- The US has already sanctioned two Chinese refineries, and further actions could increase tensions with Beijing

Natural gas prices are higher this morning and heading for a weekly gain
- Prompt gas prices have surged 38c so far this week, reversing some of the losses from the past four weeks
- Production remains lower, around 104.8 Bcf/d, although yesterday's low morning production number was later revised higher to 105.3 Bcf/d, according to data from S&P
MVP Southgate to receive priority permitting review (S&P)
- The US Army Corps of Engineers has found that Mountain Valley Pipeline’s proposal for a 550 MMcf/d extension of the MVP mainline is subject to emergency permitting
- This is due to President Trump’s executive order declaring a national energy emergency and directing the agencies to use emergency permitting provisions
- While this should speed up the permitting process, Clean Water Act certifications may be required by individual states
- Once completed, the extension should allow further access of Appalachian gas into the Mid-Atlantic region, with the pipe extending from the terminus of MVP in Virginia to North Carolina