Oil Prices Ease as an Uncertain Economic Outlook for China Outweighs Expectations of Tighter Supplies
Nasdaq SECTOR COMMENTARY:
Energy stocks are set to open in the red, tracking weaker broader index futures (S&P 500 Index futures -0.7% as of 8:50 AM ET), and lower oil prices. Positions continue to be consolidating in this early September period after a strong showing in August, as investors weigh persistently high rates, strong labor data, and tightening consumer credit.
Oil prices eased on Thursday as an uncertain economic outlook for China outweighed expectations of tighter supplies from extended supply cuts in Saudi Arabia and Russia. Both benchmarks had spiked earlier in the week after Saudi Arabia and Russia, the world's top two oil exporters, extended voluntary supply cuts to the year-end. These were on top of the April cuts agreed by several OPEC+ producers running to the end of 2024.
Natural gas futures are flat ahead of weekly inventory data. Analysts expect a build of 41 bcf.
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US INTEGRATEDS
Strike action atChevron's two major liquefied natural gas (LNG) projects in Australia was paused for 24 hours because of progress made in mediation talks, a union alliance said on Thursday, raising prospects the parties may be nearing a deal.
