Increase in Supply and Drop in Gas Prices in the U.S.

Data from the U.S. Department of Energy shows that natural gas inventories at the end of last week rose by 76 billion cubic feet to 3,756, which is 12% higher than the five-year average. Therefore, the U.S. natural gas market has a surplus, leaving no choice but to discount and reduce prices.

Oil: $36.97, -8.15%

Saudi oil exports in September increased by 500,000 barrels per day, reaching 6.2 million bpd, the highest level in the past four months.

The U.S. manufacturing PMI was 55.4 in September, lower than the economists’ expectation of 56.4 and below 56 last month, signaling a slower pace of economic activity than expected (lower oil demand).

Baker Hughes reports that the number of U.S. oil rigs increased by 6 to 189, marking the second consecutive week of growth.
This signals that oil production may have reached its bottom and is likely to increase going forward, putting downward pressure on oil prices.
Trump’s COVID-19 infection is another factor contributing to the drop in oil prices last week.