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First Look - China unveils most aggressive stimulus package since 2020

Oil is up nearly $2/Bbl following aggressive Chinese stimulus
- WTI is trading near $72/Bbl, reversing losses from yesterday (As of 8:20 AM)
- Some offshore production is being evacuated again this week ahead of an expected storm impact on the Florida panhandle
China unveils most aggressive stimulus since 2020 (Reuters)
- China’s central bank announced the largest stimulus package since the pandemic in an attempt to prevent the Chinese economy from sliding further toward deflation
- The broader-than-expected package offers additional funding and interest rate cuts after a slew of disappointing data suggesting an economic slowdown
- Capital Economics said that the stimulus may not be enough on its own and that more may be required to return growth to the official target of 5%
- Weak economic activity in China has weighed on crude prices in recent weeks, with forecasts for China’s expected oil demand growth being continuously revised lower

Natural gas prices are slightly lower after yesterday's substantial rally
- The October Henry Hub contract advanced 18c yesterday to the highest level in several months
- While Lower 48 temperatures have begun their seasonal decline, they are currently forecast to remain near the 10-year normal for the next two weeks
Natural Gas Pipeline Co. of America (NGPL) declared force majeure on eastbound natural gas flows in East Texas (NGI)
- NGPL said “anomalies” were found on its Segment 25 in its TexOk Zone that required repairs
- The pipeline would schedule no less than 65% of contracted max daily quantities eastbound of compressor station 302
- The reduced supply into Louisiana added to already bullish price action on Monday