Crude falls as market assesses prospects for a US-Iran agreement
The WTI prompt-month contract dropped $4.55 to $90.53/Bbl on Thursday morning (7:30 AM CT)
Saudi-linked media outlet Al Arabiya reported that discussions may involve a partial easing of the US blockade alongside a phased reopening of the Strait of Hormuz
Bloomberg reported that Iran is preparing to deliver its latest response through Pakistani intermediaries within the next two days
In the US, exports of refined petroleum products climbed to a record last week as global buyers sought replacement fuel supplies amid disruptions tied to the US-Iran conflict
The EIA reported total product exports reached 8.2 MMBbl/d
US inventories of distillates, including diesel, remain at their lowest seasonal level since 2005, while gasoline inventories also continue to trail historical norms
According to AAA, the national average gasoline price climbed above $4.50/gal on Tuesday, the highest since July 2022, while diesel prices surged to roughly $5.67/gal
Natural gas falls as late May temperatures show accelerating cooling demand
Natural gas is down -3.6c to $2.694/MMBtu (As of 07:30 AM CDT)
Temperatures fell in the forecast range, but with the outlook flipping to CDDs by May 15, this will start to be interpreted as bearish
Storage week temperatures are expected to gain roughly 7°F over the next to weeks by 5/22 to 67.5°F (Criterion)
L48 feedgas demand continues to be depressed due to maintenance, sitting below 18 Bcf/d
The EIA will release its weekly natural gas storage report today, with Bloomberg survey showing a median expectation of 72 Bcf injection for the week ending May 1
Cheniere has received approval to introduce feedgas at Corpus Chirsti LNG’s Train 6 (S&P)
This is expected to add 210 MMcf/d of feedgas demand from West Texas hubs at peak capacity (NGI)
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