Crude flat as US reiterates economic pressure campaign
The WTI prompt-month contract slipped $0.05 to $81.20/Bbl Friday morning (7:50 AM CT)
Treasury Secretary Scott Bessent said the US intends to intensify economic pressure on Iran while maintaining its naval blockade of Iranian ports
The market remains tilted to the downside as Washington appears to favor economic measures over renewed military action, according to Arne Lohmann Rasmussen of Global Risk Management
Meanwhile, the UAE Foreign Ministry said Iran targeted two vessels transiting the Strait of Hormuz, while overall traffic through the waterway remained constrained
With no major catalyst currently shifting the outlook, crude (Brent) is likely to remain rangebound between $80 and $90/Bbl, according to Saul Kavonic of MST Marquee
Gas moves higher on mixed weather changes
Natural gas is up 3.5c to $2.762/MMBtu (As of 07:50 AM CDT)
Overall L48 temperature forecasts shifted slightly higher this morning, up 0.5°F (Criterion)
The Rockies and South Central regions gained, while the Southeast region cooled
This cooling in the Southeast comes as Southeast basis prices sit close to 6-month highs on hot weather
Southeast demand averaged 17 Bcf/d from Aug 10-12, up around 2 Bcf from levels seen Aug 1-9
Canadian imports fell 1.2 Bcf/d this morning to 4.5 Bcf/d, a fresh two-week low (Criterion)
MISO issues hot weather alert for its South Region (S&P)
The advisory is effective from Aug 12 - Aug 16 for the portion of MISO’s footprint that covers Southeastern Texas, Louisiana, and parts of Arkansas and Mississippi
MISO forecasts its southern region peakload at 33.5 GW, around 2 GW higher than this month’s average so far
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