The WTI prompt-month contract climbed $1.37 to $65.33/Bbl in early Wednesday trading (7:30 AM CT)
Reports indicated the US may move to seize tankers carrying Iranian crude, alongside discussion of deploying an additional carrier strike group to the region if nuclear negotiations break down
Although last week’s initial US–Iran talks were described as constructive, the risk of failed diplomacy continues to support prices amid concern over potential military action and resulting supply disruptions
The American Petroleum Institute estimated a 13.4 MMBbl build in US crude inventories last week
Official government inventory data is scheduled for release later Wednesday
EIA signals softer price outlook
The agency expects global oil supply to outpace demand in the coming years, projecting average WTI prices to decline from about $65/Bbl in 2025 to $53/Bbl in 2026 and $49/Bbl in 2027
Ongoing implied global inventory builds in the near term are expected to weigh on crude prices even as geopolitical risks remain elevated
March Henry Hub contract remains around $3.10/MMbtu
The prompt natural gas contract is down slightly this morning, with prices remaining around $3.10/MMbtu for another day
Lower-48 population-weighted weather forecasts show temperatures above the ten-year average for the next week, before falling below average
Dry gas production recovered to 108.4 Bcf/d yesterday, but is lower at 107.5 Bcf/d today, according to S&P data
Trump unveils plant to support coal power plants (Bloomberg)
The Trump administration will use the 1950 Defense Production Act to enter into agreements to buy electricity from coal plants to power military facilities
The DOE will distribute $175 million to fund upgrades at six US coal power plants
This comes amid a broader push by the administration to extend the life of the US coal fleet, despite continued retirements and reduced utilization of coal plants by the power industry
Data from the EIA shows about 41 GW of planned coal plant retirements over the next decade, although many of those plants run well-below their maximum generation capacity
Get market insights delivered to your Inbox every day!
