Executive Summary
Oil prices declined in the third quarter of 2022, as West Texas Intermediate (WTI) and Brent Crude front-month futures ended the quarter at about $79/bbl and $85/bbl, respectively — a decrease from $108/bbl and $112/bbl, respectively, at the start of the quarter. Natural gas was more volatile, with Henry Hub front-month futures settling at $6.77/mmbtu on 9/30/2022 — an increase from $5.71/mmbtu to start the quarter — but below the highs in the second half of August, topping out at $9.71/mmbtu. Natural gas prices recovered in the third quarter of 2022, after the sharp decline in mid-June after news that a Freeport LNG facility would be offline longer than anticipated, giving rise to over-supply fears.
