The prompt-month WTI contract is down $0.34 to $76.95/Bbl Friday morning (7:45 AM CT)
President Trump said negotiations between Iran and Oman over the Strait of Hormuz are “moving along”
Iran’s Deputy Foreign Minister Kazem Gharibabadi said the two sides have reached an agreement “in principle,” with the final terms expected to be announced soon
Under the proposed Iran-Oman agreement, Tehran would also seek to block Israeli vessels from transiting the strait and require so-called hostile countries to pay compensation for passage
Meanwhile, Iran’s Fars News reported that Tehran struck “hostile targets” in the strait Thursday following explosions near Qeshm Island
Elsewhere in the Middle East, more Saudi crude cargoes are signaling the Suez Canal and Egypt as destinations as exporters look to reduce exposure to the growing Houthi threat in the Red Sea
The Houthis said this week they intend to expand their campaign to target Saudi vessels in the northern Red Sea
The Bal 2026 strip is trading near $74/Bbl, while the Cal 2027 strip is closer to $69/Bbl as traders weigh the potential for a Hormuz agreement and improved regional crude flows
Gas moves up as Canadian imports fall
Natural gas is up 0.9c to $2.649/MMBtu (As of 07:30 AM CDT)
Canadian imports fell over 850 MMcf/d to just 4.6 Bcf/d, one of the lowest levels we’ve seen in months (S&P)
The fall came as both the Northeast and Midwest entry points pulled back sharply (Criterion)
LNG feedgas demand has picked up to 18.8 Bcf/d this morning (Criterion)
Golden Pass commissioning progress has worked to bring back some demand in the midst of Freeports lingering maintenance
Golden pass gained 151 MMcf/d today, nominating for 609 MMcf/d of feedgas demand
The EIA reported a build of 33 Bcf in US working gas storage for the week ending 7/31
This was slightly above average analyst estimates at 30 Bcf, and now puts the surplus at a 195 Bcf surplus to the five-year average
Assuming normal weather, storage is forecast to be at or slightly above 4 Tcf by the end of injection season
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