Phillip Streible, Blue Line Futures chief market strategist, joins 'Power Lunch' to discuss natural gas prices and what will impact them.

Oil prices have experienced a decline due to persistent global oversupply, weakening demand, and concerns about the Chinese economy. Despite this, Exxon Mobil has raised its long-term earnings and surplus free cash flow outlook by $5 billion through 2030, with its shares rising 3% following the announcement.

Natural gas prices are currently volatile, affected by updated weather forecasts predicting milder U.S. temperatures and high production levels. However, long-term demand for natural gas is expected to increase, driven by its significant role in powering AI data centers, which now account for nearly 40% of electricity use in these facilities.

Oil dropping on supply concerns

Joining us to break down the trade and what other factors could influence prices is Phil Striebel. He's the chief market strategist at Blue Line. Phil, I have kind of like a running gentleman's bet with a friend in town about which way NatGas goes from here because he says based on seasonal patterns and he would know in prior winters this is going to be a really cold one. These prices are going to go much higher. You add in the AI demand on data centers and all the like. What do you say about staying long with NatGas trade here? Yeah, I mean, I really like NatGas over the long term. I mean, NatGas price, they are dropping primarily due to an updated weather forecast predicting milder temperatures across the U.S. from the mid to latter part of the month. It's easing some of those concerns about the heating demand. Seasonally, this is a time of year for heightened volatility in the market. It reprices itself in response to the rate of change on supply and demand. If you look technically going on a longer term scope, August, September, October, natural gas traded between 4 and 450. It was November 5th breakout that ran it up to the 550 level. And now that 450 breakout level, which was old resistance, should define itself as new support. But back to what you're saying, we've got the high production levels. So the near record NatGas production averaging about 109 billion cubic feet per day in December. What happens is high prices drive more drilling, more supply. Then you get a shift in the weather model. It pushes prices down rather violently like what we're seeing today. But one more thing on the long term, that demand natural gas's role with A.I. Natural gas creates electricity for the grid primarily by using chemical energy to spin a turbine connected to the generator. So many tech companies and data center developers are building their own dedicated on-site natural gas power plants that supplies almost 40 percent of all the electricity in A.I. centers. So long term prices heading higher. I think the floor is being risen, but short term volatility with weather. Yeah, could be 35 degrees below the average in certain parts of the upper Midwest. I mean, that is super cold. All right, let's switch gears to oil and Exxon Mobil, Phil, because Exxon Mobil issuing some new longer term guidance today didn't get a lot of attention. But it is now Exxon Mobil effectively raising its outlook. It now sees earnings growth and surplus free cash flow by the year 2030. It is raising both by about five billion dollars, basically over the next five years. Exxon Mobil CEO Darren Woods writing, quote, Our transformation helps ensure that in any future market environment for decades to come, Exxon Mobil will have an important role and deliver substantial shareholder value. And they kind of see Brent crude around sixty five bucks. Phil, the market clearly likes the news. Exxon shares up three percent today and it adds to a pretty good run for big oil and stocks lately, even as the price of oil itself stays flat or goes down. Why are we seeing a divergence where the stocks are going up like the XOP ETF is up four percent this year, while oil is down two percent? I mean, they're just they're just becoming much more and more efficient here. A lot of these companies here, they're in a positive environment at the moment. And yes, oil prices are going down because the persistent role of global oversupply, weakening demand on the outlook here, concerns about the Chinese economy. But the reality is, is those affect the global oil prices and the global profitability of individual companies. I mean, we've seen restored production here in a key oil field in Iraq. That's why prices have fallen about. You know, we've got about a one percent decline here today. But the expectations of the supply glut are really currently outweighing those geopolitics. And a peace deal between Russia and Ukraine could increase supply by about two million barrels per day. If you look at oil by itself as a commodity, I think resistance 60 to 61 support 58. We break there. We're probably going to retest those lows. But a lot of these companies, they're just getting better at what they do. And that's what's helping support the individual consumer as far as companies concerned.

In Australia, millions of kids' social media profiles are going dark, as the country's new social media ban takes effect for anyone under 16. Jo Ling Kent reports.

Canberra

Australia's social media ban takes effect for kids under 16

President Trump, in recent months, has dismissed concerns about affordability, but this evening, in the battleground state of Pennsylvania, he is focusing on the crisis and touting his administration's efforts to lower the cost of living. Nancy Cordes has more.

Pennsylvania

Trump tries to flip the script on affordability

Dozens of protesters blocked a highway near Tel Aviv to demonstrate against moves by the Israeli government to force some ultra-Orthodox Jews into mandatory military service, something they are currently exempt from so they can study the Torah full time.

Tel Aviv-Yafo

Bill over ultra-Orthodox military conscription sparks protests in Israel

President Trump has told Politico that Nicolas Maduro's "days are numbered" in Venezuela. Political strategists Kevin Sheridan and Hyma Moore join with analysis.

Washington

Trump says Maduro’s “days are numbered”

The FBI has released a new photo of former Olympian Ryan Wedding, whom the bureau’s director has described as a “modern day iteration of Pablo Escobar.” The ex-skier and snowboarder remains at large as agents continue their search.

FBI releases photo of Olympian and alleged drug kingpin Ryan Wedding

Ukraine President Volodymyr Zelenskyy met Pope Leo XIV and Italian Premier Giorgia Meloni in Rome on Tuesday (December 9), meanwhile voicing his refusal to surrender territory to Moscow despite pressure from Washington for territorial concessions.

Rome

Ukraine Invasion

Zelenskyy seeks backing from Pope Leo XIV, Italian PM Meloni

A federal judge said Tuesday (December 9) that the Department of Justice can unseal the Ghislaine Maxwell sex trafficking case records. CBS News' Scott MacFarlane has more details.

Judge says DOJ can unseal Ghislaine Maxwell trafficking case records

Prosecutors on Monday (December 8) released new evidence seized from Luigi Mangione on the day of his arrest. He is accused of killing UnitedHealthcare CEO Brian Thompson a year ago and has pleaded not guilty.

Manhattan

New evidence introduced in Luigi Mangione case

The EU antitrust enforcer has opened an investigation into the U.S. tech giant over its use of online content to power its AI services, a move that threatens to ratchet up transatlantic relations.

Brussels

EU Commission opens probe into Google over AI

The U.S. government said the approval, which comes in exchange for a 25% surcharge, would also be available to other chipmakers like Intel and AMD.

Trump gives Nvidia green light to sell H200 chips to China

Ukraine is set to present a revised peace plan to the United States on Tuesday following President Volodymyr Zelenskiy’s talks in London with the leaders of France, Germany, and Britain.

London

Ukraine to share revised peace plan with U.S., Zelenskiy says

The International Criminal Court Tuesday handed down a sentence of 20 years to a Sudanese militia leader for war crimes and crimes against humanity committed during the country's civil war two decades ago.

ICC sentences Sudan militia chief for crimes against humanity

U.S. President Donald Trump on Monday (December 8) unveiled a $12 billion aid package for American farmers, the latest government effort to shore up a key political constituency hurt by the financial fallout from his trade policies.

Trump unveils $12 billion aid package for farmers hit by trade war

Thailand and Cambodia are blaming one another for starting a deadly exchange of fire that killed at least five people and threatens to unravel a U.S.-backed ceasefire between the neighbouring southeast Asian countries.

Surin

Thailand-Cambodia ceasefire could be unravelling

Paramount Skydance made a hostile takeover bid for Warner Bros. Discovery for $108 billion US just days after Netflix announced it made a $72-billion US deal with the legacy studio. It’s a move that even has U.S. President Donald Trump weighing in.

Hollywood

Paramount launches hostile takeover bid for Warner Bros.

President Trump announced Monday he will allow Nvidia to sell its advanced H200 computer chips to "approved customers" in China, but Mr. Trump said the deal does not include Nvidia's more advanced Blackwell system or its soon-to-be-released Rubin system.

Trump says he's letting Nvidia sell some AI chips to China

Ukraine's European allies put on a show of support for President Volodymyr Zelensky Monday as they expressed scepticism about parts of the U.S. proposal to end the war with Russia. The discussions came after President Donald Trump accused Zelensky of not reading his administration's proposal on a deal to end Russia's invasion following almost four years of war.

Downing Street

European allies back Zelensky after Trump criticism

A powerful 7.5-magnitude earthquake shook northeastern Japan late on Monday (December 8), prompting orders for about 90,000 residents to evacuate and tsunami warnings that hours later were downgraded to advisories.

Aomori

7.5-magnitude earthquake strikes Japan's northeast

Ukrainian President Volodymyr Zelenskiy said on Monday (December 8) that unity between Europe, Ukraine and the U.S. was important when negotiating an end to Russia's war in Ukraine. He made the remark during a visit to London.

Kyiv stresses European unity as allies 'skeptical' of U.S. peace plan

Ukrainian leader Volodymyr Zelenskyy and European allies prepared to hold talks in London on Monday (December 8), after President Donald Trump accused him of not reading the U.S. proposal to end the war with Russia.

Zelenskyy to meet European allies after Trump criticism

Thailand has launched airstrikes on Cambodian military sites as renewed border violence threatens a U.S.-backed peace deal.

Bangkok

Renewed border violence threatens Thai-Cambodia peace

South African authorities have withdrawn a 90-day visa exemption for Palestinians, saying the recent arrival of a charter flight with 153 people onboard was part of a campaign of “forced migration.”

Johannesburg

Middle East Conflict

South Africa withdraws 90-days visa exemption for Palestinians

Chinese and Japanese ties came under further strain after a Chinese fighter aircraft trained fire-control radar on Japanese military jets for the first time.

Okinawa

Chinese fighter jet locks radar on Japan planes

A military coup declared in Benin on Sunday has failed, the country’s interior minister said, just hours after soldiers took over state television to announce the dissolution of government.

Porto-Novo

Benin coup attempt thwarted by soldiers loyal to Republic

Hong Kong's citizens were voting on Sunday in an election where the focus is on turnout, with residents grieving and traumatized after the city's worst fire in nearly 80 years and the authorities scrambling to avoid a broader public backlash.

Hong Kong Island

Hong Kong holds tightly guarded election amid anger over deadly fire

A U.S. envoy says territorial claims remain a sticking point in a proposed peace deal between Russia and Ukraine. The U.S.-led meetings have ended; meanwhile, Russia launched a massive strike on central Ukraine early Sunday.

Kyiv

U.S.-led peace talks wrap as Russia launches strike on Ukraine

Russia targeted Ukraine's energy infrastructure overnight, meaning another winter of power outages for Ukrainians as Vladimir Putin tries to crush their resolve. Holly Williams reports.

Moscow

Russia targets Ukraine's energy infrastructure

Defense Secretary Pete Hegseth doubled down on U.S. military strikes on alleged drug boats, saying President Trump can take decisive military action as he sees fit. Willie James Inman reports on the latest.

Pete Hegseth on boat strikes: "We will find you and we will sink you"

To crackdown on so-called “narcoterrorists”, the US has slowly but steadily been building up its military presence in the Caribbean. 15,000 troops are now stationed in the area, many in Puerto Rico.

Ponce

U.S boosts military presence in Puerto Rico amid Venezuela tensions

Residents in the Indonesian region of Aceh Tamiang have been struggling to get aid while mourning the loss of their loved ones, as the death toll from floods and landslides that hit Sumatra island this month rose to more than 900 people.

Breakdown