Crude slips as hopes for broader US-Iran agreement fade
The WTI prompt-month contract fell $0.79 to $82.74/Bbl Friday morning (7:30 AM CT)
Iran and Oman continue to negotiate a revenue-sharing arrangement for tanker traffic through the Strait of Hormuz, but President Trump reportedly told mediators that he is unwilling to revive the terms of the June ceasefire agreement with Tehran (WSJ)
Meanwhile, oil flows through the strait are increasing as Gulf producers restore exports despite persistent risks to commercial shipping
Bloomberg estimates that approximately 6–8 MMBbl/d of crude is now moving through the waterway
Arne Lohmann Rasmussen of A/S Global Risk Management said the market is becoming more comfortable with the disruption because significantly more oil is transiting Hormuz than during the opening months of the war
Separately, Venezuela is reportedly considering withdrawing from OPEC, just several months after the UAE left the producer group
Gas retreats as temperature gains pull back
Natural gas is down -6.5c to $2.849/MMBtu (As of 07:45 AM CDT)
The L48 cooled 4.3°F overall day over day (Criterion)
Freeport noms remained high for the second day in a row as multi-week maintenance comes to an end
L48 feedgas demand stayed around 19.3 Bcf/d this morning
Tropical Storm Dolly’s strength and path have been revised
The NHC advisory has the storm staying South of the L48, on a collision course with Puerto Rico and Hispaniola
Most models still limit the intensity of the storm, but a few are forecasting it to be at least a Cat 1 Hurricane
As of now, the storm poses little risk to L48 natural gas demand
Get market insights delivered to your Inbox every day!
