Israel’s Gas Expansion Reshapes Eastern Mediterranean Supply Outlook

Natural gas flows in the Eastern Mediterranean are set for a significant shift as Israel moves toward record output, underpinned by expansion at the Chevron-operated Leviathan and Tamar fields. The upgrades are expected to lift Israeli production above 3 billion cubic feet per day by 2026, adding roughly 600 million cfd in the near term and easing prior infrastructure bottlenecks. A substantial portion of the additional supply is projected to be exported to Egypt, altering regional gas trade dynamics and potentially influencing benchmark prices for Natural Gas, as well as broader sentiment toward crude benchmarks such as Oil – Brent Crude and Oil – US Crude.

Over the past month, natural gas has posted a strong move, with prices advancing about 22.8%, reflecting expectations of tighter balances and heightened geopolitical and seasonal risk, while its 1-day technical stance registers as a Buy. Brent crude has gained roughly 4.8% over the same period, signaling moderate strength in global crude markets alongside a 1-day technical reading of Buy, while US crude has climbed about 3.7% month-over-month, also aligning with a short-term Buy signal. These concurrent upward trends suggest energy markets are pricing in both robust demand and ongoing supply and geopolitical uncertainties. Investors can explore more updates, prices, and analysis across global markets at Commodities.