Oil and Gas Pull Back from Earlier Gains

OIL

• Crude pulls back after trading higher on concerns for the impact of future supplies after the Russian ‘partial’ mobilization announcement this morning. The updated EIA US stock data and FOMC rate decision are both due later today.
• EIA petroleum inventory data is expected to report a build in crude and small draws in the refined products.
• Economic growth risks continue to weigh on oil markets with future oil demand potentially impacted by central back tightening. The Federal Reserve are expected to raise rates by 75bp at the meeting later today.
• Reports that China has agreed to an increase in fuel export quotes by 15m tons will boost demand for crude and increase the supply of oil products to the tight global market.

GAS

• European TTF gas is also back near to flat on the day as risks to winter supplies from Russia are balanced against EU efforts to balance winter supplies. Russian supply to Europe via the Nord Stream pipeline has already stopped, but supplies continue through the southern routes of Ukraine and Turkey.
• Supplies from Norway are gradually recovering after a period of maintenance.
• US Natgas is following the moves with support from a weather forecast shift further towards above normal temperatures for the west of US.
  • Brent NOV 22 up 0.1% at 90.67$/bbl
  • WTI NOV 22 down -0.2% at 83.78$/bbl
  • Gasoil OCT 22 up 0.1% at 977.25$/mt
  • TTF OCT 22 up 0.9% at 196€/MWh
  • US Natgas OCT 22 down -0.3% at 7.7$/mmbtu