Crude extends losses as US Iran measures fall short of broader sanctions
The WTI prompt-month contract fell $2.66 to $82.35/Bbl Tuesday morning (7:30 AM CT)
The US said it would continue increasing economic pressure on Iran but stopped short of imposing secondary sanctions on countries doing business with Tehran, easing concerns that the measures could significantly tighten global oil balances
The US Treasury announced new restrictions targeting roughly 60 entities tied to Iran’s oil-revenue networks, including shadow fleet vessels involved in transporting petroleum products
“There was a lot of buildup around the announcement but what we got was more a warning about where policy is heading than an immediate shock to physical supply,” said Haris Khurshid of Karobaar Capital
Meanwhile, Pakistan’s Army Chief completed a one-day visit to Iran as part of broader diplomatic efforts aimed at reducing tensions between Tehran and Washington
On the physical side, analysts continue to note that Strait of Hormuz traffic has been uneven, with vessels moving through in larger batches followed by periods of relatively limited activity rather than at a steady pace
The UK Navy reported that an oil tanker was struck and disabled northeast of Oman in the Strait, underscoring that risks to commercial shipping remain elevated despite successful US Navy escorts
Gas slips as weather models remain stable overall
Natural gas is down -7.8c to $2.704/MMBtu (As of 07:30 AM CDT)
The L48 gained 3.4°F over the forecast period, with minor gains in the Midwest and South Central partially offset by minor losses in the Midwest
Production took a typical Tuesday drop, down to 111 Bcf/d
Production peaked in the two-week window on August 15 at just over 113 Bcf/d
LNG rebounded thanks to gains at Corpus and Golden Pass, up to 17.9 Bcf/d (Criterion)
FERC approves Driftwood to start construction of dual lines (S&P)
US FERC authorized Driftwood to begin partial construction of Line 200 and 300 to support Woodside’s LNG export terminal project
The lines have a combined capacity of roughly 8.8 Bcf/d
The terminal is targeting first LNG by 2029
El Niño is suppressing hurricane season
AccuWeather lowered its 2026 Atlantic forecast to only 3-4 hurricanes, and only 1-2 major ones
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