The WTI prompt-month contract rose $1.73 to $84.96/Bbl on Tuesday morning (7:30 AM CT)
The US carried out a 10th consecutive day of strikes against Iran as Tehran continues targeting tankers transiting the Strait of Hormuz
According to EOS Risk Group, the vessel struck was an oil products tanker operated by Kuwait Oil Tanker Co.
Yemen's Houthi forces expanded the conflict by announcing a blockade on Saudi maritime traffic in the Red Sea, increasing risks to Gulf energy exports
Saudi Arabia has shifted more crude exports through Yanbu, its primary Red Sea terminal, leaving roughly 2.5 MMBbl/d of exports exposed to potential Houthi attacks, according to Rystad Energy
The Houthis warned that vessels conducting business with Saudi ports "may be subject to targeting in any location within the operational reach of the Yemeni Armed Forces"
The Bal 2026 strip rose above $80/Bbl, while the Cal 2027 strip is trading above $72/Bbl
Gas ticks higher as power demand surges
Natural gas is up 0.1c to $2.861/MMBtu (As of 07:30 AM CDT)
Power demand picked up over 3 Bcf/d this morning to over 50 Bcf/d (Criterion)
This translated to CDDs picking up from 13 yesterday to 15 today
Forecasted temperature changes experienced another day of large, offsetting shifts
The Northeast and Midwest cooled further, offsetting gains in the South Central and Rockies
Bertha upgraded to Tropical Storm, forecasted to move westward
The tropical storm is unlikely to impact gas supplies; however, it poses risk to LNG cargo and slight risk to cooling demand on the gulf coast (NGI)
Cheniere moves closer to production start on Corpus Christi LNG Train 7 (S&P)
The company received permission from US regulators July 17 to introduce feedgas to its seventh train
The unit is expected to achieve first LNG production by mid-August and reach substantial completion around mid-September
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