Page 6 - Policy Economic Report - Feb 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

positions was amplified by accelerated short covering in both ICE Brent and NYMEX WTI, as speculators
rushed to close previously accumulated bearish positions.

Crude spot markets rebounded firmly in January, as prices recovered following several consecutive
months of declines. The rebound was primarily driven by easing selling pressure in futures markets. In
addition, heightened geopolitical developments in several key producing regions added a risk premium to
the market. Supply disruptions in some regions further tightened spot market conditions, particularly in
the Atlantic Basin. Unplanned oil supply outages in the Caspian region, together with adverse weather
conditions in the US, raised concerns over near-term oil supply availability.

Natural Gas spot prices at the US Henry Hub benchmark averaged $7.72 per million British thermal units
(MMBtu) in January 2026. Henry Hub's natural gas prices continued their upward momentum for a fifth
consecutive month in January, rising by 81.2%, m-o-m. Prices rallied on the back of colder weather, which
lifted demand for residential heating in the month. At the same time, supply was limited amid production
outages in key regions. According to data from the US Energy Information Administration (EIA), average
weekly natural gas storage decreased by 12.6%, m-o-m, in January. Prices also benefited from higher LNG
demand, though export capacity was limited due to some outages. Prices were up by 86.9%, y-o-y.

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