Energy Fuels Drop as Crude Oil and Natural Gas Prices Fall

Oklahoma energy market reacts to oil and gas price declines

A sharp drop in energy fuels on Tuesday marked another difficult day for the crude oil and natural gas markets, as both commodities continued a three-day slide. Crude oil prices fell nearly 2%, and natural gas prices dropped more than 4%, signaling growing market unease about global supply and potential production increases.

Crude oil prices fall for third straight day

It was the third consecutive day of declines for crude oil, and analysts said investors grew nervous about another possible OPEC+ increase in oil production. The latest U.S. sanctions against Russia’s largest oil companies also added pressure. Those sanctions target major oil producers Lukoil and Rosneft, tightening economic restrictions on Moscow as the war in Ukraine continues.

Brent crude futures settled down $1.22, or 1.9%, to $64.40 a barrel, while U.S. West Texas Intermediate crude futures dropped $1.16, or 1.9%, closing at $60.15 on the New York Mercantile Exchange. These back-to-back losses followed the previous week’s gains—when both Brent and WTI crude posted their largest weekly increases since June.

Sanctions drive Russian oil companies to divest assets

According to Reuters, the U.S. government provided written assurances that Rosneft’s German business would be exempt from sanctions because those assets are no longer under Russian control, according to Germany’s economy minister. In response to the sanctions, Lukoil, Russia’s second-largest oil producer, announced Monday that it would sell its international assets, signaling an effort to reduce exposure to geopolitical risks.

Natural gas prices slide more than 4%

As crude oil futures slumped, natural gas prices also weakened. The market price for gas fell more than 4% before settling at $3.288 per MMBtu, representing a decline of $0.154, or 4.47%. Analysts said the drop reflected milder weather forecasts and increased supply, which weighed on near-term demand expectations.

Oklahoma energy stocks show mixed results

It turned out to be a sour day for Oklahoma energy stocks tracked daily by Oklahoma Energy Today. While a few companies managed small gains, most recorded moderate to sharp losses. Vital Energy fell nearly 5%, while Empire Energy Partners dropped 3%. Other declines included Devon Energy, Expand Energy, Gulfport Energy, and OGE Energy, each down around 2%.

Despite recent optimism in the sector, Tuesday’s market performance underscored how quickly sentiment can change when global supply fears and economic sanctions collide. Energy analysts will continue watching how OPEC+ production decisions and U.S.-Russia sanctions influence oil and gas prices as winter approaches.