Oil
Benchmark crude futures continued their second week of recovery, with Brent and WTI gaining about 0.9% and 2.6% respectively, hovering near their highest levels since November 2014.
Supply drivers supported the prices, including the declining Iranian crude exports that reached a peak of 2.6mn bpd last April, but started to fall since the announcement of the US sanctions in May, and now are reaching only around 1.7 mbpd. A drop in US crude stocks of 2.1mn barrels also contributed in the price boost, as well as some informal reports that Saudi Arabia is comfortable with current price levels.
Other market factors limited the price upside, such as the trade war between the US and China, emerging market financial crises, and the US president calls on Opec to boost output and to lower prices.
As suggested earlier, the oil market is likely rangebound in a $60-$80 price territory, being lifted up by supply worries and dragged down by demand risks and trade wars.
During past weeks, Brent price exceeded $80 many times before retreating back at the end of the day. It is unlikely that the $80 price ceiling will resist forever, especially with current volatility.

Gas
Asian spot LNG prices for November delivery were down last week by 4% due to a slowdown in demand. After a strong buying activity in the previous weeks, the market was due for a correction, while many LNG traders were gathering at the Gastech conference in Barcelona. As we enter into the winter season, the heating demand will kick off and more cargoes are expected to be procured, eventually supporting the prices. The general sentiment of the Gastech conference was relatively positive towards the LNG outlook, with most participants seeing a significant upside in the demand and the trade.
In the US, Henry Hub natural gas futures rallied last week by more than 7%, on a sustained cooling demand prompted by extended warm weather. Price gains were limited by the impact of Hurricane Florence that caused power outages and cooler weather along its path. Daily gas production reached a new all-time high last Monday of 84.4 bcfd.  
Also, UK gas futures gained more than 7% last week, backed by heating demand that is scaling up with the cold weather. Almost 80% of Britain’s households use natural gas for residential heating. However, stronger wind generation and ample gas supply might pressure prices this week.

* This article was supplied by the Abdullah bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development.