The WTI prompt-month contract fell $1.57 to $85.49/Bbl Monday morning (7:30 AM CT)
Treasury Secretary Scott Bessent said the US is preparing to unveil a broader strategy aimed at economically isolating Iran and countries that continue doing business with Tehran
Bessent said Washington plans to coordinate with allies in an effort to impose unprecedented economic pressure, forcing countries to choose between maintaining ties with Iran and aligning with the US-led campaign
The latest threats have shifted attention toward China, one of Iran’s largest trading partners, as Beijing continues to reject Washington’s sanctions strategy and call for a diplomatic resolution
Meanwhile, Axios reported that roughly 40 vessels transited the Strait of Hormuz Friday night using a southern route close to the Omani coast
The vessels reportedly carried around 16 MMBbl of oil, equivalent to roughly 80% of typical prewar flows through the strait
Gas Advances as the Northeast and Midwest Warm
Natural gas is up 5.0c to $2.823/MMBtu. (As of 07:30 AM CDT)
Weather model shifts were mixed over the weekend, with the Northeast and Midwest Warming and the rest of the L48 cooling to offset
The most pronounced move was the Midwest, which gained over 20°F over the weekend across the forecast period
Cooling demand is taking a small break, with CDDs hovering around 12 this week, however they are expected to pick back up above 13 next week (Criterion)
LNG feedgas demand came in at 17.8 Bcf/d this morning, still affected by Golden Pass’s slow ramp up and Freeport's ongoing maintenance
Freeport hasn’t provided commentary on the status of their train currently offline, which was originally planned for completion this week
Whitewater FID on Solitude leads to largest jump in long-dated Waha Curve to date (NGI)
On the day of the FID, Waha basis tightened 7.6c to Henry Hub for the Oct 2029-March 2032 Long-dated strip
The price move reflects optimism around egress out of the Permian at the end of the decade
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