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Oil prices were trading up close to 2% on Wednesday afternoon after the Federal Reserve raised the key short-term interest rate by 25 basis points, emphasizing that the “U.S. banking system is sound and resilient”.

Despite reporting record earnings in 2022, U.S. shale producers are warning that inflation will drag on profitability in 2023. Rising inflation has driven the breakeven price higher for shale companies, which could counter the companies’ higher budgets. Shale producers continue to prioritize returning profits to shareholders, but could see those profits come under pressure if costs rise.

The oil markets have been seesawing in a spectacular fashion this week. Still trying to overcome the pain of so many financials quitting the game last week, a WSJ report that argued OPEC+ was looking to increase its production target by 500,000 b/d come January 2023 has sent prices dovetailing, only to be halted by Saudi Arabia, the UAE and Kuwait all denying the rumors and insisting that if anything, OPEC+ would be cutting further.

The United States became the world’s largest liquefied natural gas (LNG) exporter during the first half of 2022, according to data from CEDIGAZ. Compared with the second half of 2021, U.S. LNG exports increased by 12% in the first half of 2022, averaging 11.2 billion cubic feet per day (Bcf/d). U.S. LNG exports continued to grow for three reasons—increased LNG export capacity, increased international natural gas and LNG prices, and increased global demand, particularly in Europe.