In this week’s Market Movers Americas, presented by Greg Holt:
• WTI prices rise amid tensions in the Middle East
• Oil supply in focus as US sanctions on Venezuela ease
• US steel mills raise flat-rolled steel prices
• Mild Southeast weather could push natural gas prices down
This week,
Geopolitical tensions across the Middle East remain heightened as the Israel-Hamas war faces risk of escalation, boosting WTI crude oil to settle near the $90 per barrel mark at the end of last week. Oil markets will also be keeping an eye on crude flows once US sanctions on Venezuela ease, which could lift the country’s crude production by 275,000 barrels per day between the third quarter of this year and the fourth quarter of 2024. Still, analysts have noted that global supply will remain constrained due to Saudi Arabia and Russia's voluntary output cuts.
In the US steel industry, multiple steelmakers have announced base price increases for flat-rolled steel products. Some have set minimum hot-rolled coil offer levels at $800 per short ton, despite ongoing concerns about demand while many auto workers are on strike. The move to raise prices coincides with tighter spot availability from domestic producers, with lead times extending into December-January.
In natural gas, Henry Hub spot prices have averaged below $3 per MMBtu for the first time since 2020, and could drop even further with the mild weather approaching. Temperatures in the Southeast US are expected to remain in the high 60s Fahrenheit throughout much of the week and could reach into the 70s by the weekend.
I’m Greg Holt. Thanks for kicking off your Monday with S&P Global Commodity Insights.