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Natural Gas Update: European Futures Rally Amid US-Iran Diplomatic Progress, US Futures Edge Lower

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European natural gas futures rallied on Thursday, despite optimism over a potential diplomatic resolution to the ongoing US-Iran conflict. US natural gas futures edged lower ahead of the weekly gas storage report.

Front-month Dutch TTF futures were up 2.61% to 73.890 euros ($84.01) per megawatt-hour, while British NBP futures rose 2.67% to 184.280 British pence ($2.44) per therm. Front-month Henry Hub futures were down 0.29%, at $3.144 per million British thermal units.

Speaking at the United Nations General Assembly on Wednesday, Iran's President Masoud Pezeshkian said that his country was open to talks but would not accept the "language of force."

This comes as Europe continues to struggle with relatively low gas inventories, at 70.24% of capacity, compared to 81.96% a year ago, according to Gas Infrastructure Europe. Inventories were significantly below the five-year average for this period, at 85.9%, according to the Swiss Federal Office of Energy.

US markets were waiting for the Energy Information Administration's weekly gas storage report later in the day, with forecasts pointing to a 50 billion cubic feet net injection into storage, up from 44 Bcf last week, but below the 75 Bcf injected into storage in the year-ago period, according to data compiled by Investing.com.

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Oil & Energy

Oil Update: Crude Surges as Trump Backs Diesel Export Ban, Iran Vows No Surrender

Crude futures surged in after-hours trading on Wednesday as markets weighed the prospect of a US ban on diesel exports against signs of easing crude supply disruptions in the Gulf, while Iranian President Masoud Pezeshkian vowed that Tehran would not surrender.Dubai 1st Line Futures rose 3.6% to $98.56/bbl. Front-month West Texas Intermediate futures were up 2.8% to $92.88 per barrel, while Brent futures advanced by 4.3% to $103.56/bbl.The American Petroleum Institute said the US supplies about 20% of diesel traded globally by sea, and an export ban would remove that supply from the market, exacerbating the global refining crisis driving high fuel prices.The Trump administration is reportedly preparing a plan for a 90-day diesel export ban. President Trump said on Tuesday that he has called for a ban on US diesel exports, while Treasury Secretary Scott Bessent reportedly confirmed that the administration is examining whether a full or partial ban is feasible.Meanwhile, Pezeshkian told the UN General Assembly on Wednesday that Iran would not surrender in the conflict with the US but said Tehran still believed diplomacy could end the conflict. Soojin Kim, research analyst at MUFG, said that progress on both Saudi export capacity and US-Iran talks is unwinding part of the geopolitical premium, though unresolved Hormuz and Red Sea risks leave the market vulnerable to renewed disruption.

Oil & Energy

Market Chatter: Trinidad's NGC Agrees Shell Aphrodite Gas Terms, Signs EOG Coconut Deal

Trinidad and Tobago's National Gas, or NGC, reached a gas supply agreement with Shell (SHEL) for the Aphrodite field and signed a separate deal with EOG Resources (EOG) covering its Coconut project share, Reuters reported Wednesday, citing NGC Chairman Gerald Ramdeen.The Shell agreement settles the pricing issue and allows Aphrodite development to move ahead, with production targeted for Q2 2027. Ramdeen said the new terms provide NGC with 400% more value than earlier proposals, according to the report.Separately, NGC signed an agreement to purchase EOG Resources' share of gas from the Coconut project, with the supply going to Trinidad's petrochemical sector instead of Atlantic LNG and adding 300 billion cubic feet to NGC's supply, the report said.Shell, NGC and EOG Resources did not immediately reply to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$EOG$SHEL
Oil & Energy

Market Chatter: US Heating Oil Prices Surge, Threatening Higher Winter Bills for Millions

Millions of Americans face higher heating bills this winter as a global fuel supply crunch pushes heating-oil prices sharply higher, the Wall Street Journal reported on Wednesday.New York retail prices reportedly reached $6.14 per gallon last week, up 66% from a year earlier. About 4.8 million US households, mostly in the Northeast, rely on heating oil, with a typical home using about 800 gallons during the winter.Heating costs for those households are projected to rise 43% to roughly $2,500, from $1,749 last winter.Global fuel inventories have fallen amid disruptions involving the Strait of Hormuz, threats to tankers and attacks on Russian refineries.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)