Crude rises as Iran and Oman near Strait of Hormuz deal
The WTI prompt-month contract rose $1.00 to $76.22/Bbl Thursday morning (7:45 AM CT)
Iranian Deputy Foreign Minister Kazem Gharibabadi said the parties have reached a preliminary understanding on nearly all issues discussed, including proposed entry and exit routes for maritime traffic
However, he stressed that a bilateral agreement with Oman would not automatically result in the full reopening of the Strait of Hormuz, noting that the US is not involved in the arrangement
Shipping risks across the region remain elevated, with the UK Navy reporting that a tanker heard explosions while passing through the strait near Oman, while the Houthis claimed to have targeted a Saudi oil tanker in the Gulf of Aden
Despite the continued attacks on commercial vessels, traders appear reluctant to add more risk
“Oil prices are trending higher today as flows through the strait remain restricted and ongoing strikes on vessels continue, but the upside is capped with uncertainty if a deal between the Iran and Oman can be reached,” said UBS Group analyst Giovanni Staunovo
Gas prices are stable on quiet weather and supply changes
Natural gas is down -2.7c to $2.661/MMBtu (As of 07:30 AM CDT)
Overall L48 temperature change was minimal day-over-day, however the Midwest did continue to cool
Chicago, for example, is expected to cool to highs of just 75°F from Aug 13-20 (CWG)
Williams acquires Momentum Midstream (S&P)
Williams has agreed to acquire Haynesville Shale operator Momentum Midstream
The company looks to pursue opportunities linking Haynesville Shale production with growing LNG demand
The company announced two expansion projects related to the acquisition
The first, a 2.25 Bcf/d Delta Access expansion along the Transco Gas Pipeline to enter service Q1 2029
The second, a 750 MMcf/d expansion to the Shelby trough Connector, which connects Haynesville gas to Gillis, LA
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