New Updates
FUEL HEDGING & NATURAL GAS MARKET UPDATE (November 2, 2026)
PRICES LOWER – INVENTORIES HIGHER VS. FIVE-YEAR AVERAGE AND HIGHER VS. EXPECTATIONS – PRODUCTION HIGHER – DEMAND HIGHER – EXPORTS LOWER – RIG COUNT LOWER – HEDGE FAVORABILITY HIGHER
Price Movement:
- Spot price: Decreased by $0.152 per MMBTU
- Forward price: Decreased by $0.043 per MMBTU Natural Gas Market Update 26-11…
Key Drivers:
- Inventories: Higher than both the five-year average and expectations, putting downward pressure on prices
- Production: Increased on the week, adding supply pressure
- Demand: Increased and remains above the five-year average as the market approaches winter heating season
- Exports: Lower on the week, creating downward pressure
- Rig Count: Lower, providing some price support
- Speculation: More bearish, with speculative positions becoming increasingly short
Market Indicators:
- Hedge Favorability Index: Increased to 25.39% from 24.20%, indicating improved hedging conditions
- Forward Curve: Remains positively sloped and became more positively sloped, signaling greater supply relative to expected demand and continued pressure on spot prices Natural Gas Market Update 26-11…
Forecast:
Natural gas prices remain under pressure as mild temperatures limit heating demand and inventories rise above the five-year average. Lower rig activity provides some support, but higher production, lower exports, and increasingly bearish speculation continue to weigh on prices.
FUEL HEDGING & PETROLEUM MARKET COMMENTARY (November 2, 2026)
PRICES MIXED – CRUDE OIL PRODUCTION HIGHER – INVENTORY HIGHER – DOLLAR HIGHER – STOCK MARKET LOWER – SPECULATION LOWER – DEMAND LOWER – HEDGE FAVORABILITY MIXED – EXPECTED PRICE VARIABILITY/CASH FLOW AT RISK LOWER
Price Movement:
- Diesel: Spot -$0.1937, Forward -$0.0050
- Gasoline: Spot +$0.1004, Forward +$0.0268 Petroleum Market Update 26-11-02
Key Drivers:
- Iran Diplomacy: Additional time for diplomacy is reducing geopolitical and supply-disruption risk, putting downward pressure on prices
- OPEC+: December production quotas will remain unchanged
- Russian Refining: A Ukrainian attack on a Russian refinery reduced global refining capacity, supporting gasoline and diesel prices
- US Production: Domestic production returned to levels seen before Hurricane Isaias disrupted Gulf of Mexico production
- Inventories: US commercial and strategic inventories increased slightly
- Refined Products: Limited refining capacity in the Persian Gulf continues to support gasoline and diesel prices
- Demand: Lower demand created downward pressure
- Speculation: Lower speculation also pressured prices
- Dollar: Higher, which is generally negative for petroleum prices
Market Indicators:
- Hedge Favorability: Mixed, with diesel slightly improving while gasoline became less favorable
- Price Risk: Expected price variability and cash-flow risk decreased; average diesel risk fell to $1.34 per gallon, while gasoline risk fell to $1.15 per gallon Petroleum Market Update 26-11-02 Petroleum Market Update 26-11-02
Forecast:
Petroleum prices remain mixed. Lower geopolitical risk and recovering US production are helping ease prices, while reduced global refining capacity continues to support refined products. The market remains sensitive to developments involving Iran and global refinery operations.