Crude Edges Higher as Trump Says No Iran Talks Are Planned
The WTI prompt-month contract rose $0.12 to $85.06/Bbl Wednesday morning (7:45 AM CT)
President Trump said on Truth Social that there are currently no discussions with Iran underway or scheduled, further dimming prospects for a near-term diplomatic breakthrough
With no new US-Iran talks planned, traffic through the Strait of Hormuz remains well below pre-war levels as threats to vessels transiting the waterway continue
Bloomberg reported that three China-bound supertankers reversed course in the strait as heightened security risks continue to complicate shipping through the region
Some vessels are still moving through the waterway, however, including a Liberia-flagged ship that recently crossed with its transponder switched off
Priyanka Sachdeva of Phillip Nova said oil’s next move may depend less on another major geopolitical headline and more on growing concerns about being caught on the wrong side of tightening physical conditions
Domestically, the API reported US crude inventories declined by 0.3 MMBbl last week, with official EIA inventory data due later Wednesday
Gas jumps as temperatures warm in the forecast period
Natural gas is up 7.7c to $2.853/MMBtu (As of 07:45 AM CDT)
The L48 warmed this morning over the forecast period by 5.6°F, led by heating in the Northeast and Western regions
Most of the Southern US will be under a hazardous heat advisory this weekend (NOAA)
Solitude Pipeline FID to add significant late decade egress capacity out of the Permian
Whitewater’s JV with Devon, MPLX, Diamondback, and Western announced an FID on a 4.5 Bcf/d expansion linking West Texas supply to Katy Hub
The first pipeline will enter service in 2029, with the second half coming in 2030
Analysts estimates for how much gas the Permian will be producing by 2030 hover around 30 Bcf/d
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