WTI crude oil futures rose toward $63 per barrel on Monday, extending Friday's gains on concerns over Russian crude flows amid intensified Ukrainian strikes on energy infrastructure and stalled peace negotiations that heightened the risk of further Western sanctions. Over the weekend, Ukraine launched a large attack on Russia’s Kirishi refinery, one of the country’s three largest facilities with a capacity of about 355,000 bpd. Additionally, US President Donald Trump reiterated calls for Europe to stop buying oil from Russia, after earlier saying that he’s prepared to impose major sanctions on Russia if NATO countries do the same. Investors are also monitoring US-China talks in Madrid that began on Sunday amid Washington's demands that its allies impose tariffs on Chinese imports over Beijing’s purchases of Russian crude. However, gains in crude were capped by concerns over slowing US demand as well as a looming global supply surplus amid increased production from OPEC+.
US natural gas futures fell below $3/MMBtu, nearing a two-week low due to weak LNG export demand and robust storage. Government data showed a larger-than-expected 71 bcf storage build for the week ending September 5, compared with 36 bcf a year earlier and a five-year average of 56 bcf. Despite forecasts for warmer weather and stronger demand, abundant inventories continue to pressure the market. In addition, gas flows to LNG export facilities averaged 15.6 bcfd so far in September, down from 15.8 bcfd in August. At the same time, output from the Lower 48 slipped to 107.3 bcfd in early September, slightly below the record 108.3 bcfd in August.
