Domestic Oil and Gas News: Week of October 27th, 2025
Market & Price Trends
Oil prices ticked higher as the United States and China reached a framework for a trade deal, easing growth concerns for two major energy consumers. Reuters
Production & Activity
The latest rig-count data from Baker Hughes show U.S. total rigs at 550 as of 10/24/2025, up +2 week-on-week. Oil rigs were at 420; gas rigs 121. American Oil & Gas Reporter
This suggests modest activity uptick in drilling, which could influence near-term supply prospects.
The U.S. Energy Information Administration (EIA) in its short-term outlook raised U.S. crude production for 2025 to ~13.53 million barrels/day and 2026 to ~13.51 million barrels/day. Advisor Perspectives+1
Natural gas production was also revised upwards to about 117.6 billion cubic feet/day in 2025. Advisor Perspectives
Key Strategic / Policy Moves
The U.S. imposed new sanctions targeting Russian oil firms (Rosneft & Lukoil) and upcoming discussions with Hungary over energy supply relationships highlight global ripple impacts of U.S. policy. Reuters
Hungary’s Prime Minister Viktor Orban plans to meet U.S. President Donald Trump in Washington to discuss these sanctions and their effect on Hungary’s oil imports. Reuters
What to Watch
Inventory trends: Rising U.S. production and rig activity may lead to increasing inventories, which could dampen prices if demand doesn’t keep pace.
Supply disruptions: The impact and enforcement of the Russia-oil sanctions will be key; failure to restrict flows could rebalance the market.
Trade/Geopolitics: The U.S.–China deal framework is a positive, but any reversal or delay could re-introduce demand concerns.
Domestic drilling pace: Continued small increases in rigs and production may tip the supply balance later in the year.
Refining & infrastructure: With more crude entering the system, refiners and mid-stream logistics may face bottlenecks, influencing margins.