Valor | Energy Connection – October 5, 2026

October 5, 2026 Edition

At Valor, our goal is to keep you informed of the latest news and updates from the oil and gas industry. We are committed to sharing the insights and knowledge that our team gathers to help you stay ahead in this dynamic sector. From mergers and acquisitions to regulatory changes and technological advancements, we cover all the key developments that impact the industry. Stay tuned for weekly updates to keep you well-informed.

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  Comstock, SOCAR advance $1.65-billion Haynesville partnership with framework agreement
  Summary: Comstock Resources and Azerbaijan’s SOCAR executed a framework agreement to advance a $1.65 billion strategic partnership in the Haynesville shale. The agreement commits both companies to finalize a definitive purchase and sale agreement by October 31, aiming to close the transaction by the end of 2026. Under the deal, SOCAR will invest $1.65 billion in Comstock’s natural gas assets, while both firms evaluate international marketing opportunities to export attributable gas as LNG.
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• U.S. rig count slips to 598 as gas drilling pulls back
• Summary: The Baker Hughes North America Rig Count Report shows the U.S. rig count fell by one to 598 for the week ended October 2, though total rigs remain 49 higher than a year ago. Oil rigs rose by one to 456, gas rigs fell by two to 133, and miscellaneous rigs held at nine. Texas lost three rigs to fall to 278, while offshore activity added two rigs to reach 10, the Haynesville basin held 56 rigs (up over 40% year-over-year), and crude oil traded around $90.85 for WTI and $100.50 for Brent.
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• Oil ends volatile week mixed as emergency reserve release knocks WTI lower but Brent holds above $102
• Summary: WTI crude fell $1.76 to settle at $91.11 per barrel, dropping 1.41% for the week, while Brent crude dropped $0.06 to settle at $102.25 per barrel, rising 0.11% on a front-month basis. Friday’s market weakness followed a G7/IEA announcement to release 100 million barrels of diesel and emergency reserves over several months, including 50 million barrels from European governments. The Brent-WTI spread finished at approximately $11.14 per barrel as global refined product supplies remain tight.
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• Diesel margins slide as G7 announces 100 million barrel stocks release
• Summary: The G7 announced a four-month release of 100 million barrels of crude oil and diesel, pressuring middle distillate refinery margins that hit record highs last month. ING noted the ICE gasoil crack dropped to about $70 per barrel from $85 per barrel mid-last week, influenced by stock releases and reduced risk of a U.S. diesel export ban. Meanwhile, UK Maritime Trade Operations reported seven vessel strikes near the Strait of Hormuz since September 28 amid continued Persian Gulf tensions.
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• US natgas futures fall as West Virginia pipe returns, Northeast spot drops to multi-year lows
• Summary: NYMEX October natural gas futures fell 10.1 cents, or 3.2%, to $3.095 per mmBtu as TC Energy lifted force majeure on the Mountaineer XPress pipeline, which had affected 1.4 to 1.8 bcfd of flows. Northeast next-day spot gas prices dropped below $1 per mmBtu following a weekend nor’easter. While Lower 48 average production tied a record high 112.3 bcfd in September, gas storage surpluses are projected to narrow to 2.4% above normal as daily LNG feedgas flows averaged 18.0 bcfd during the month.
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  OPEC+ holds November quota at 31.01 million barrels daily
• Summary: OPEC+ agreed to maintain its monthly production quota at 31.01 million barrels per day for October and November across eight covered members. Despite this ceiling, the group produced only 25 million barrels daily in August, leaving actual output well below its official target. Kpler data showed Middle East oil export flows across key shipping points averaged 18.5 million barrels daily in the week to October 1, even as global markets remain tight amid disrupted production capacity.
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• Oil’s new normal is higher prices
• Summary: Middle Eastern crude exports recovered to 15.5 million barrels per day in September, with Saudi Arabian exports doubling to 5.4 million bpd after partial restoration of its East-West pipeline. Standard Chartered raised its 2026 average Brent forecast to $92.00/bbl from $85.50/bbl and WTI to $86.00/bbl from $80.25/bbl due to ongoing regional instability. For 2027, the bank expects both Brent and WTI to average $89.50/bbl, up from $77.50/bbl, as Brent traded down 1.5% to $103.72 and WTI fell 2.2% to $90.62.
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