Brent Crude Oil: steadied near $93 per barrel on Monday, after rising more than 5% in the previous two sessions, as concerns about a weakening demand outlook and a US-led plan to impose a price cap on Russian oil weighed on sentiment.
Prospects of a demand-sapping global economic slowdown continued to pressure oil prices, driven largely by aggressive monetary tightening by major central banks and top crude importer China’s Covid-19 curbs.
The Group of Seven is also trying to recruit more countries to join their efforts in limiting Moscow’s energy revenues by imposing a ceiling on Russian oil prices, with the program expected to start from December as European sanctions kick in.
Meanwhile, Russian President Vladimir Putin threatened to retaliate by halting all energy exports to Europe should a price cap push through.
Elsewhere, The UK, Germany and France voiced doubts about Tehran’s commitment to a new nuclear agreement, putting prospects for a boost in Iranian Brent Crude Oil exports on hold.
While US natural gas futures were trading around the $8.1/MMBtu mark, below an over 14-year high of $10/MMBtu touched last month, on forecasts for lower weather-driven demand and soaring domestic production.
On top of that, Freeport LNG announced that it would delay the restart of its Quintana export plant to November, leaving more gas in the US for utilities to inject into stockpiles for next winter.
Still, natural gas futures rallied about 115% in 2022 as sky-high prices in Europe amid persistent supply disruptions from Russia and Asia kept demand for US LNG exports strong.