BofA's Francisco Blanch: We have a surplus of oil and prices will likely keep trending lower

Oil Market Outlook - The current outlook for oil remains bearish, with a surplus in the market leading to a projected decline in prices [2][3] - Prices are expected to average in the low $60s for Brent and high $50s for WTI over the next few months, with potential stabilization and recovery in the longer term [4] Natural Gas Market Dynamics - The U.S. natural gas market is experiencing volatility, with current storage levels slightly below 3.9 trillion cubic feet and an expected addition of 30 billion cubic feet next week [6][7] - Strong liquefied natural gas (LNG) export rates are providing a price floor, despite domestic demand being weaker [8][11] Geopolitical Influences on Energy Commodities - Sanctions on Russia and ongoing conflicts are tightening the market for certain energy commodities, although a significant surplus remains [3][10] - European efforts to reduce reliance on Russian gas are accelerating, with a new target date for curtailing imports set for the end of 2026 [12] Gold Market Insights - Gold purchases have surged, with estimates of investor buying reaching $140-$150 billion in a single quarter, although October has seen some volatility [13][14] - Central banks continue to buy gold, driven by geopolitical risks and inflation concerns, with a long-term target price of $5,000 anticipated [15][16]