The WTI prompt-month contract rose $1.87 to $96.24/bbl on Wednesday morning (7:56 AM CT)
Crude advances as Iranian energy assets are hit and Gulf supply remains constrained
Iran reported strikes on key energy infrastructure including portions of the South Pars gas field and facilities in Asaluyeh, raising concerns over additional supply disruptions
Flows across the Persian Gulf remain severely restricted with transit through the Strait of Hormuz effectively halted and only limited volumes able to move through alternative routes
Iraqi exports via the Kurdistan to Ceyhan pipeline are expected to resume but volumes represent only a fraction of pre-conflict output
The disruption has pushed deferred curves higher with Cal 2027 above $70/bbl while physical shortages develop in parts of Asia
Elevated fuel prices are beginning to feed into broader macro concerns with US diesel prices exceeding $5/gallon, increasing pressure on inflation and central bank policy
The API reported a 6.6 MMbbl build in US crude inventories last week with official government data due later today
Natural gas prompt month is up 6.0c to $3.083/MMBtu. (As of 07:30 AM CT)
Weather-driven demand fell significantly today as the cold front subsides (Criterion)
Production fell a further 0.5 Bcf/d today to a new two week low at 108.5 Bcf/d
This is nearly 3 Bcf/d below the March 6 high of 111.5 Bcf/d
Recovery is expected over the weekend as pipe outages and weather driven demand fade
Forecasted Power and Rescom demand both fell as weather forecasts warmed across the L48
FERC poised for decision on Texas gas storage plant and pipeline authorizations (S&P)
FERC has an open meeting on March 19 where they will vote on Golden Triangle Storage’s Spindletop 30.8 Bcf Expansion Project
This project is expected to add four new salt dome caverns to a facility in Jefferson County, Texas
The expansion is expected to help meet demand from Gulf Coast LNG export terminals
They will also vote a Rockies express 0.2 Bcf/d lateral project and a Northwest Pipeline compression project in Utah
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