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First Look - Natural gas supply climbs | OPEC+ expected to delay production increase again

Oil is trading slightly lower, but heading for a weekly gain
- Oil prices gained this week amid higher geopolitical risk premium, which offset some weakness driven by a stronger US dollar
OPEC+ expected to delay production increase again (BBG)
- 80% of traders and analysts surveyed by Bloomberg expect OPEC to delay its production increase again, potentially into the second quarter of 2025
- Several delegates from OPEC also said a delay may be necessary
- Saxo Bank’s head of commodity strategy said, “The market is simply not strong enough to support increased barrels at a time where sluggish demand and ample non-OPEC+ supply continue to weigh on prices”
- OPEC’s next meeting is expected to be held online, on December 1
- Citigroup and JP Morgan expect oil prices to trend toward $60/Bbl even if OPEC+ cancels the supply increases

After a five-day 55c rally, gas prices take a breather and trade lower Friday morning
- The December contract was trading near $3.17 before the market open, down from yesterday’s $3.33 settle
- Weather models in the 11-15 day window showed a warmer shift after multiple days of leaning cooler than normal
Dry gas supply climbs back to 103.1 Bcf/d, up from the 100 Bcf/d level only 10 days ago (S&P Global)
- Most of the gains over the past week and a half were from Appalachia, where gas production rose from 32.2 Bcf/d on Nov. 9 to 35.06 Bcf/d in early-day nominations
- Supply in the Northeast has likely come up as demand has increased, and cash prices have climbed above $2.50 at Eastern Gas South (Dom S)