Crude dips as traders weigh Trump’s latest comments
The WTI prompt-month contract fell $3.20 to $100.85/Bbl on Wednesday morning (7:30 AM CT)
President Trump again reiterated the war with Iran would be over soon insisting Iran is eager to make a deal at the White House Congressional Picnic
However, Trump also threatened further strikes if Iran does not get a deal done to end the war saying, “we may have to give them another big hit… something maybe early next week, a limited period of time”
The president has consistently threatened to reignite military action against Iran just to back off from such plans
On the Hormuz front, several supertankers are attempting cross through the waterway
According to Bloomberg reporting, one Korean and two Chinese supertankers are trying to travel through the strait, potentially marking one of the largest single days of VLCC outflows since the conflict began
The API is reporting US crude stockpiles fell by 9.1 MMBbls last week, with official government data from the EIA expected later on Wednesday
Natural gas slips off seasonal highs as power demand pulls back
Natural gas is down -4.7c to $3.067/MMBtu (As of 07:30 AM CDT)
L48 Power demand fell over 2 Bcf/d this morning as weather cooled (Criterion)
Weather forecasts held mostly flat with minor losses in the Southeast and Rockies regions
Production firmed with a minor ~ 100 MMcf/d gain
LNG feedgas demand rebounded from yesterday’s sub 16 Bcf/d early cycle back up to almost 18 Bcf/d as Sabine Pass and Freeport normalized production
Early heat wave hits Northeast, driving up power demand (S&P)
The NWS issued a heat advisory for Philadelphia from May 18 through May 19 with high temperatures reaching 97°F
The grid operator issued a hot weather alert which required members to review transmission/generation dispatch plans to determine if maintenance can be deferred or cancelled
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