Page 6 - Policy Economic Report - July 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Crude spot prices rebounded in June, supported by a combination of geopolitical risk premiums and
strengthening physical market fundamentals. The North Sea Dated benchmark led the gains, rising by over
$7/b, m-o-m, marking the strongest increase among the major spot benchmarks. Spot prices were
bolstered by concerns over short-term supply availability amid escalating geopolitical tensions in the
Middle East and Eastern Europe. Renewed buying interest, particularly for prompt-loading cargoes,
contributed to upward pressure, as refiners sought to secure volumes ahead of the anticipated seasonal
increase in demand for transportation fuels during the summer driving season.

Natural gas spot prices at the US Henry Hub benchmark averaged $3.02 per million British thermal units
(MMBtu) in June 2025. Henry Hub's natural gas prices declined for a fourth consecutive month in June,
falling by ~3.0%, m-o-m. A combination of mild weather and lower US LNG demand inflated domestic
storage, dragging down prices. Reports of high storage levels added more downward pressure on prices.

July 2025 Page | 5