Crude holds steady as potential talks come into focus
The WTI prompt-month contract rose $0.16 to $91.44/bbl on Wednesday morning (7:30 AM CT)
Futures held near recent levels after retreating from earlier highs this week as traders weigh the possibility of renewed US-Iran negotiations, with Strait of Hormuz traffic still largely disrupted
Officials are discussing a potential extension of the current ceasefire, with President Trump indicating the conflict could be nearing an end
The US continues to enforce its Hormuz blockade to limit Iranian exports, while Iran warned that maintaining the measure would constitute a breach of the ceasefire
If tensions ease, Middle East supply could return in stages, according to ANZ Group
Analysts estimate roughly 2–3 Mbbl/d could come back within the first month, with additional volumes following thereafter
Natural gas inches up as production declines continue
Natural gas is up 1.7c to $2.616/MMBtu (As of 07:37 AM CDT)
Production fell sharply to a new two-week low at 102.6 Bcf/d, down 5 Bcf/d from Friday (S&P)
There have been losses across the L48, but the Northeast and Texas have combined for around 3 Bcf/d of production losses since Friday
Appalachia Basin gas production slumped to it’s lowest level since February freeze-offs as exceptionally mild shoulder season temperatures have pushed Eastern Gas South cash prices to a six-month low of $1.785/MMbtu (S&P)
Weather cooled in the forecast range, bringing back some shoulder season HDDs in the 6-15 day range (Criterion)
A relatively large temperature swing is expected by April 20, as L48 average temperatures are expected to fall to 55°F
This sub-60 weather will only last a couple of days
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