The WTI prompt-month contract fell $3.78 to $92.82/Bbl on Tuesday morning (7:30 AM CT)
US and Iranian forces exchanged fire near the Strait of Hormuz overnight, underscoring that tensions remain elevated even as both sides continue to signal progress toward a temporary peace agreement
The US military said it carried out self-defense strikes in southern Iran targeting missile-launch sites and vessels allegedly attempting to deploy naval mines, while Iran’s Islamic Revolutionary Guard Corps claimed it fired on an F-35 fighter jet and several drones
Despite the overnight confrontation, US and Iranian officials continue negotiations, though Secretary of State Marco Rubio said Tuesday that talks are still expected to take “a few more days” as both sides work through the wording of an initial framework agreement
Key disagreements remain, particularly over Iran’s push for greater authority over traffic through the Strait of Hormuz, a proposal the US, European allies, and Gulf Arab states continue to reject
Natural gas is up as power demand picks back
Natural gas is up 5.8c to $2.965/MMBtu (As of 07:30 AM CDT)
Power demand gained nearly 6 Bcf/d over the weekend, rebounding to 36.1 Bcf/d
Total supply saw no change as production and Canadian imports held mostly flat from Friday
The weather forecast cooled 6.7°F over the weekend in the overall L48 (Criterion)
However, the cooling came in the 1–2-week range, while temperatures at or above normal are forecasted into mid-June
Total LNG feedgas eased -241Bcf to 18,415 MMcf/d
FERC automatic approval cost cap doubles under proposal (NGI)
FERC proposed expanding the scope and scale of projects pipelines can build under its blanket certificate program on Thursday
FERC proposed raising the automatic authorization ceiling to $30 million from $14.5 million, and the cap for prior-notice projects from $41.1 million to $86 million
The proposal lands as pipeline capacity struggles to keep pace with demand growth from LNG and data centers
Get market insights delivered to your Inbox every day!
