Oil & Gas – ‘Drill baby drill’ through American eyes
Brent oil price remains stable within a narrow range of USD 60-65/barrel, with ample supply offsetting geopolitical risks of supply disruptions and the Fed's interest rate decision.
US oil production rises despite lower WTI prices, driven by higher efficiency and the increasing value of NGLs and associated gas.
TTF-Henry Hub ratio returns to pre-energy crisis levels. The Henry Hub gas benchmark has doubled since the summer, while the TTF price has fallen. Weather conditions, increasing electricity demand, and growing LNG exports are driving this convergence.
European LNG risk is increasing as a result of rising US gas prices. Furthermore, the US is promoting the use of LNG as a weapon through its National Security Strategy. With the phasing out of Russian gas, the share of American LNG will continue to increase.
