Page 8 - Policy Economic Report - September 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

supported by increased flows bypassing the Strait, as well as US military escorts protecting flows through
Hormuz. However, refined product and LPG exports remain nearly 60%, or 3.7 mb/d, less than in February.

Hedge funds and money managers turned more bullish on oil prices in August. The combined ICE Brent
and NYMEX WTI net long positions rose by 12% between the weeks of 28 July and 25 August, as
geopolitical tensions persisted and money managers positioned for potential oil supply disruptions. The
rise in net long positions was concentrated in ICE Brent futures and positions, which increased by about
21% over the period.

Natural Gas spot prices at the US Henry Hub benchmark averaged $2.78 per million British thermal units
(MMBtu) in August 2026. Henry Hub’s natural gas prices declined in August after increasing for two
consecutive months. Strong US gas production coupled with ample storage levels dragged prices down.
According to data from the US Energy Information Administration, US average weekly underground
storage increased by 3.8%, m-o-m. Higher US LNG exports limited the downward pressure amid elevated
global LNG benchmarks. Prices were down by ~4.5%, y-o-y.

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