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Crude Slips on Peace Talk Signals; Gas Surges Above $4.50 on Cooling Weather Shift

Oil dips on potential Russia accord
- The WTI prompt-month contract fell $1.62 to $59.12/Bbl Wednesday morning (7:45 AM CT)
- Politico reports the White House is close to announcing a major peace agreement with Russia that officials say could potentially end the war in Ukraine
  - The US Treasury recently cited progress in constraining Russia’s funding capacity, noting “demand for Russian oil is plunging, driven by the efficiency of US sanctions”
- The American Petroleum Institute reported a 4.4 MMBbl build in US crude inventories, along with increases in gasoline and diesel stocks
  - If confirmed by EIA data later Wednesday, commercial crude stocks would rise to their highest level in more than five months
- Later Wednesday, the CFTC will resume publication of the Commitments of Traders report after the outage
Guyana exports to hit record (Bloomberg)
- Guyana’s crude exports are scheduled at 968 MBbl/d for January, according to Bloomberg data
- This would be the highest rate since the country began exporting crude in early 2020

Regional Market Insights

Updated regularly with the most important market moves and outlooks.

Natural gas is trading sharply higher, with prompt prices back above $4.50/MMbtu
- Gas prices are advancing this morning following a cooler shift in weather forecasts, with the December contract erasing losses from Monday
- Lower-48 weather forecasts shifted cooler, especially in the 11-15 day period, with temperatures expected to be below average heading into the end of the month
- LNG feedgas demand remains above 19 Bcf/d, but down from recent highs of 19.73 Bcf/d
  - It was reported yesterday that Golden Pass LNG is looking to load its first cargo in February 2026, supporting prior startup estimates
Enbridge to expand Gulf Coast storage (NGI)
- Enbridge will be expanding the Moss Bluff facility in Liberty County, TX by 7 Bcf and the Egan Facility in Acadia Parish, LA by 16 Bcf
- The company said that both salt facilities offer “exceptional connectivity and withdrawal rates”
- These expansions are part of a broader plan by Enbridge to add more than 60 Bcf of new gas storage capacity along the Gulf Coast, to support growing LNG demand