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First Look - Gas heads for a near 26c weekly gain | Oil trades higher after a two-day decline

Oil is trading higher and heading for a weekly gain
- WTI is higher this morning after falling for the past two days
- Negotiators from Israel and Hamas are set to meet in the coming days to continue ceasefire discussions
- Yesterday, the WTI prompt spread settled at the narrowest level since mid-June
- It was reported that Chinese state refiners have cut throughout rates to the lowest level since December 2023
South Sudan looks to restart oil flows through Sudan (PGJ)
- South Sudan is set to resume exporting crude oil through Sudan after repairs to a pipeline damaged during conflict, which is crucial for its economy
- Pipelines were cleaned and prepared for full oil production resumption
- South Sudan previously exported 100 to 150 MBbl/d through Sudan

Gas heads for a near 26c weekly gain, with the rally attributed in part to short-covering ahead of next week's November contract expiration.
- Prompt gas was 0.2c lower to $2.520/MMBtu (As of 8:35 AM)
- Winter ‘24/’25 strip is down 0.8c to $2.973, and the Summer ’25 strip is up 0.6c to $3.120
- Yesterday, the EIA reported an 80 Bcf injection into storage, exceeding expectations and the five-year average, with storage at 3,785 Bcf, 167 Bcf above the five-year average, and 106 Bcf higher than last year
- Today’s European Ensemble 00z runs showed a warm outlook in the 1-5 and 11-15 day ranges, with regional warming east of the Rockies, cooler trends for the West, and L48 forecasts still hinting at below-normal temps for the week of 11/8 (Criterion)
NGPL reserves capacity for Gulf Coast Fairway project and Texas-Louisiana pipeline expansion (Criterion)
- NGPL announced capacity reservations for the Gulf Coast Fairway Project (GCF), which will deliver gas in South Texas and Louisiana. The project is set to begin operations in 1Q27
- Additionally, the Texas Louisiana Project, still under FERC review, aims to boost system capacity by 300 MMcf/d through upgrades at two compressor stations
- The additional capacity will enhance gas transport from the Haynesville, Permian, and Eagle Ford basins to markets along NGPL’s Louisiana Line, scheduled for completion by July 1, 2026