Crude swings as traders assess new US-Iran signals
The prompt WTI contract climbed $0.53 to $63.42/Bbl early Monday (7:30 AM CT) before reversing lower following fresh remarks from Iran’s Foreign Minister Abbas Araghchi
Iranian state television said a section of the Strait of Hormuz, one of the world’s most critical oil transit routes, will be shut for several hours Tuesday during military exercises
Prices retreated toward session lows after Araghchi indicated Iran and the United States had reached a broad understanding on guiding principles following what he described as serious and constructive discussions
A new round of US-backed negotiations aimed at ending Russia’s war in Ukraine opened in Geneva, focusing on security and humanitarian matters
Natural gas prompt month is down -14.7c to $3.096/MMbtu (07:45 AM CDT)
The Euro Ens weather forecast shifted colder this morning, with L48 temperatures falling -19.0 °F (Criterion)
Losses were centered in the 6-10 range as a cold spell is expected to sweep across all regions except the West Coast next week
Next weeks cold spell is forecasted to send HDDs back above the 10 YR average, at around 25 HDDs at the peak of the cold spell
Early cycle nominations reported by S&P have production at 108.5 Bcf/d this morning
S&P forecasts stronger demand over two week forecast period
Forecasted temperatures are expected to dip back below the 10 YR average with next weeks cold spell, and demand is expected to return above the 10 YR average in return
The 11-15 day period is still forecasted to be very mild, roughly in line with the 10 YR average
LNG nominations strengthened this weekend, operating at an average over 20 Bcf/d (Criterion)
The strengthening was mostly accounted for by Golden Pass, which nominated 333 Mcf/d of feedgas this morning
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