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First Look - Oil Wavers on OPEC+ Talk as US Gas Finds New Momentum

Oil tumbles on reports OPEC+ may boost supply
- WTI prompt-month futures dropped $1.37 to $64.22/Bbl early Wednesday (7:45 AM CT)
- Reuters reports OPEC+ will discuss potential production quota increases at its Sunday meeting
  - Most analysts still expect output levels to remain unchanged
  - “The headlines may spook the market, but we expect fewer barrels actually coming back,” said Emily Ashford, head of energy research at Standard Chartered, citing compensation requirements and capacity limits across some members
Asia steps up purchases of cheaper US crude (Bloomberg)
- Asian buyers have accelerated US crude purchases, partly to take advantage of lower prices and strengthen trade ties with Washington
- South Korea, Japan, and India have all increased volumes, with South Korea nearly doubling November purchases
- The $1.50–$2.00/Bbl discount versus Abu Dhabi’s Murban crude remains a key driver of demand

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Updated regularly with the most important market moves and outlooks.

Natural gas trades higher, with the October contract back above $3/MMbtu
- Gas prices are advancing again today, extending gains from the last few days
- Lower-48 gas production fell sharply this morning, driven by planned pipeline maintenance in the northeast
- Weather forecasts continue to show temperatures below the ten-year average for the next two weeks
Rio Grande and Commonwealth LNG receive key permits (S&P)
- Federal regulators issued permits for two planned LNG export projects, helping both advance toward making a final investment decision by the end of the year
- The two projects together will have a capacity of nearly 5 Bcf/d and are expected to enter service by the end of the decade
- Rio Grande LNG is being built in Brownsville, Texas while Commonwealth will be built on the west side of the Calcasieu Ship Channel in Louisiana

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