WTI climbs above $86/Bbl as geopolitical tensions raise supply concerns
The WTI prompt-month contract gained $2.44 to $86.78/Bbl on Wednesday morning (7:30 AM CT)
Tehran said there are no active negotiations with Washington, adding that "only an exchange of messages" is currently taking place, according to Iran's Mehr news agency
The US has now carried out an 11th consecutive day of strikes against Iran, while President Trump pledged retaliation against Yemen's Houthi forces for disrupting Red Sea shipping and renewed threats to target Iran's Pickaxe Mountain, an alleged nuclear facility
Growing security concerns are also disrupting maritime traffic, with Bloomberg reporting that some vessels are rerouting away from the southern Red Sea
Two Asia-bound ships appear to have reversed course toward the Suez Canal, a detour that could add as much as 30 days to certain voyages, while other vessels have temporarily suspended transit
"Sources close to the group stated that the Houthis have completed preparations to attack shipping, including the deployment of missiles and drones," the Joint Maritime Information Center said in an alert
"If we actually have a closed Red Sea, that's a threat... That could shoot us over $100," said Jay Hatfield, CEO of Infrastructure Capital Management
Henry Hub Moves Higher as Bertha Approaches the Gulf Coast
Natural gas is up 5.1c to $2.916/MMBtu (7:30 AM CT)
Hurricane Bertha, a bearish risk to Gulf Coast gas demand, shifted farther south this morning
Its path puts it near almost every LNG asset on the TX/LA coastline
The main concern will be power losses for electric-driven terminals like Freeport (Criterion)
Power demand moderated this morning to 49.3 Bcf after having its third day in 2026 above 50
Despite a relatively hot summer so far, renewable growth has led to a lower share of the thermal stack
EA notes that 2026 has the lowest CDD to Bcf ratio since 2020, meaning less natural gas is being used for cooling demand
LNG feedgas demand is currently at 17.7 Bcf/d as Freeport continues its rotating train maintenance
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