The WTI prompt-month contract fell $0.96 to $55.86/Bbl early Tuesday (7:45 AM CT)
The recent selloff has been reinforced by growing optimism around a potential end to the war in Ukraine
President Zelenskiy said Ukraine has reached an agreement with the US to pursue legally binding security guarantees via a congressional vote as part of a broader peace framework
Despite renewed diplomatic momentum, it remains unclear whether the latest US initiative can overcome the obstacles that have stalled previous negotiations
Lower crude prices may ease inflation pressures and support central banks’ rate-cut ambitions next year, but they also strain fiscal balances for oil-producing nations and upstream operators
US market flashing signs of oversupply (Bloomberg)
Light, sweet WTI at Magellan East Houston traded in contango at $0.12/Bbl (12/15/25 – 12:13 PM CT)
The light, sweet barrels have remained in contango on most days since October, with little indication of a near-term flip even as suppliers attempt to draw down inventories ahead of year-end tax considerations
Traders increasingly view Gulf Coast price structure as a leading indicator for broader crude market health, given the region’s concentration of storage, refining capacity, and export infrastructure
Henry Hub falls below $4/MMbtu
The January Henry Hub contract fell below $4/MMbtu for the first time since October, as gas prices continue to trend lower
Lower-48 population-weighted weather forecasts continue to show temperatures at or above the ten-year average for the next two weeks, depressing gas demand
Dry gas production has fallen below 107 Bcf/d, the lowest level since November, according to data from S&P
LNG feedgas demand remains strong, at 19.5 Bcf/d
Environmental review for REX supply lateral granted (S&P)
Federal regulators have issued a positive environmental review for a 194 MMcf/d supply lateral on the Rockies Express Pipeline
The pipe will supply a new gas-fired power plant and an existing industrial facility near Decatur, Illinois
The new 400-MW power plant will help replace existing coal generation and support a new data center being built by Google
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