Market Movers Americas, October 23-27: Oil markets, WTI prices on the rise in the face of geopolitical conflict

This week,

Geopolitical tensions in the Middle East remain elevated amid the risk of an escalation in the war between Israel and Hamas, sending WTI crude oil hovering near $90 a barrel at the end of last week. Oil markets will also watch oil flows following the easing of US sanctions on Venezuela, which could increase the country’s oil production by 275,000 barrels per day between the third quarter of this year and the fourth quarter of 2024. However, analysts noted that global supply will remain tight due to voluntary production cuts by Saudi Arabia and Russia.

In the U.S. steel industry, many steel producers have announced price increases for basic flat-rolled steel products. Some have set the minimum bid level for hot-rolled coils at $800 per short ton despite ongoing concerns about demand while many auto workers go on strike. The decision to increase prices coincides with lower availability of spots from domestic producers, and lead times are extended to December and January.

For natural gas, Henry Hub spot prices are below $3 per MMBtu for the first time in 2020 and could fall further as mild weather approaches. Temperatures in the southeastern United States are expected to remain in the 60s Fahrenheit for most of the week and could reach as high as 70 degrees over the weekend.

I’m Greg Holt. Thanks for starting your Monday with S&P Global Commodity Insights.