Crude jumps as Trump escalates economic pressure on Iran
The WTI prompt-month contract rose $3.05 to $88.88/Bbl Thursday morning (7:30 AM CT)
President Trump announced what he called an “ECONOMIC D-DAY” against Iran, signaling a sharp escalation in efforts to pressure Tehran financially as the conflict continues to restrict Middle East energy flows
Trump also threatened consequences for countries that continue doing business with Iran, although details surrounding the potential measures remain limited
With traffic through the Strait of Hormuz still constrained, Axios reported the US military is helping move roughly 10 MMBbl/d through the region, though analysts estimate actual flows through the waterway remain well below that level
Shipping risks also extended beyond Hormuz after the UK Maritime Trade Operations reported that a tanker was hijacked roughly 136 nautical miles east of Yemen and redirected toward Somalia
“In this headline-driven environment, the latest Trump salvo is driving prices higher,” said Tamas Varga of PVM Oil Associates
Gas falls as temperature forecasts pull back sharply
Natural gas is down -5.7c to $2.757/MMBtu. (As of 07:45 AM CDT)
Temperature forecasts declined broadly east of the Rockies, with early September looking cooler than August
The L48 is expected to fall by a rough average of 3°F by the week ending 9/4
This translates to a loss of 3 daily CDDs by the end of the forecast range
Power burn fell 600 MMcf/d this morning to 50.4 Bcf/d
Supply pulled back sharply, with L48 dry gas production falling 1.3 Bcf/d to 110.9 Bcf/d
Feedgas demand gains off lows
Feedgas demand rose about 400 MMcf/d this morning to 17.9 Bcf/d, led by the return of Freeports Train 3, which tripped unexpectedly (Criterion)
They returned to 2 trains this morning, still undergoing maintenance as 1 train remains down
Golden pass continues slow ramp up, nominating for 543 MMcf/d this morning
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