The Wall Street Journal reported on the Saudi Minister’s veiled threat of another price war, which is only one factor adding to the renewed uncertainty for oil and gas producers. 

The wars in the Middle East and Ukraine have contributed to increased volatility in commodity prices driven by expected changes to global supply and demand. Gas prices increased almost 35% in September, and 60% over the last six months, while oil prices stayed relatively flat in September but are down 16% over the last six months.

Closer to home, the Fed announced its first rate cut in September, thereby giving a capital-intensive industry some reprieve on debt service cost. Despite higher gas prices and lower interest rates, the rig count continued its downward trend.

These factors are only a few of the uncertainties oil and gas producers need to evaluate when preparing their 2025 budgets, liquidity forecasts, and drilling plans.

Saudi Minister Warns of $50 Oil as OPEC+ Members Flout Production Curbs. OPEC+ producers agreed to ease output cuts after kingdom issued a veiled threat of price war against cheaters

https://www.wsj.com/business/energy-oil/saudi-minister-warns-of-50-oil-as-opec-members-flout-production-curbs-216dc070