​EBC Markets Briefing | Gas prices jump following huge Russian attack

Oil prices were little changed on Friday but were on track to snap a two-week losing streak as fading hope for immediate peace between Russia and Ukraine increased the risk premium.

Brent has risen 2.7% this week and the WTI has gained 1.1%. Traders has woken up to Putin's stall tactic with Russia launching its largest drone and missile salvo on Ukraine in more than a month.

India's state-owned refiners have resumed purchases of Russian oil after a brief pause triggered by US tariffs, Bloomberg reported. China has also expanded its role as a leading buyer of Russian oil.

Stockpiles fell 6 million barrels in the week ended 15 August, the EIA said, compared with expectations for a draw of 1.8 million barrels. Gasoline stocks also dropped more than forecast.

Meanwhile, US natural gas held below $3 as forecasts for higher demand over the next two weeks and rising gas flows to LNG export plants offset near-record output and ample fuel in stockpiles.

LSEG said average gas output in the Lower 48 states is set to build on a record monthly high of 107.8 bcfd in July. Analysts predicted inventories would keep growing at a faster than usual pace in coming weeks.

Natural gas price has been heading lower since hitting more than $4.2 on 20 June. The price has rebounded to its downward trendline, so we expect a meaningful pullback from this level.

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