U.S. Onshore Active Weekly Total Rig count remains at 549, (10.3.25). Q4 starts with product pricing volatility. WTI crude oil lost $4.84 over the week to close @ $60.88/Bbl. Natural gas (HH) posted a $.48 gain over the same period to $3.32/Million Btu.

Negativity hit WTI crude oil prices the week ending Friday, October 3.

The U.S. Federal government shutdown (10.1.25) impacts short-term crude oil demand. No authorized funding and no buying of goods and services by the federal government which includes petroleum products. No government released jobs report was available this first Friday of the month. Will traders take no “official” jobs report as no jobs created? However, investors leaned into larger Fed-rate cut 'hope' and pushed equity markets to new highs during the week.

The massive fire at Chevron's El Segundo refinery (Los Angeles, CA) has taken multiple processing units off line which means less crude oil intake demand. U.S. pump prices may rise with less gasoline processing capacity. The last negative item is seasonal. October starts the slow Q4 demand period for crude oil trades.  The combined negative news provided no buying support for WTI oil prices on Friday.

Watch natural gas prices for more upward movement this week of October 6.  A price test of $3.50 / Million Btu is underway. Price volatility is present when any U.S. LNG terminal experiences operation or maintenance interruptions including Gulf of America hurricanes. August and September set U.S. LNG export records as per preliminary data by financial firm LSEG with September averaging about 15.3 BCFGPD!  Actual DOE volumes are released to the public two months later. August DOE LNG volumes to be released about October 24.

This blog is not investment advice. Perform your own research and viewpoints. Catch more energy reports on SIPES National Website: https://www.sipes.org/