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First Look - Oil falls more than $2/Bbl on higher supply prospects

Oil falls more than $2 amid higher supply prospects
- WTI prices are trading near $67.30/Bbl, after falling nearly $2 yesterday (As of 8:20 AM)
- Saudi Arabia is reported to be committed to increasing output in December, while talks between factions in Libya appear to be making progress, potentially leading to a resumption in Libyan production (BBG)
29% of Gulf of Mexico oil production shut-in ahead of hurricane (Argus)
- Around 511,000 b/d of US offshore oil output is offline ahead of Hurricane Francine’s landfall in Florida
- Helene is forecast to be a major hurricane with winds of at least 111mph when it reaches Florida
- Chevron and Equinor shut down production at their Gulf facilities and evacuated all workers

Natural gas is trading higher, extending gains from yesterday
- Henry Hub prices have continued to push higher, to the highest level in multiple months
- Production has fallen to the lowest levels since last spring amid Gulf of Mexico shut-ins and weaker Appalachian output
  - Some of the Northeast production drop can be attributed to an unplanned operational issue on the Rockies Express Pipeline
EQT to reverse some production curtailments in October (PGJ)
- EQT, the biggest U.S. natural gas producer, plans to reverse some production curtailments in October and November
- EQT has already curtailed about 1 Bcf/d of production in the spring; total industry curtailments were around 2 Bcf/d
- Expectations are that EQT and other producers will boost output in late 2024 and in 2025 to meet growing export demand