The WTI prompt-month contract rose $1.59 to $63.92/Bbl on Wednesday morning (7:30 AM CT)
Axios indicated that any potential US military action would likely unfold over an extended, multi-week campaign rather than a short, targeted strike similar to last month’s operation in Venezuela
Such an escalation could threaten crude transit through the Strait of Hormuz, a critical chokepoint for energy exports from the Middle East
Negotiations to date have not produced a definitive breakthrough, though Tehran said the two sides reached a broad understanding on the framework for a possible agreement
A US official said Iranian representatives are expected to return to Geneva within roughly two weeks with a more detailed proposal aimed at narrowing remaining differences
Natural gas prompt month is down -5.7c to $$2.974/MMBtu. (As of 07:45 AM CDT)
Weather model forecasts shifted colder east of the Rockies, but warmer in the Rockies and West coast (Criterion)
Gains were centered in the 6-10 day range west of the Rockies, and offsetting losses were centered east of the Rockies in the 11-15 day range
Weather is still expected to dip below the 10 YR average next week, and to recover back up to the 10 YR average in the 11-15 day range
Average L48 temperatures are expected to dip down 3.8 degrees in the week ending 2/27 to 44.5 °F, but are expected to return to 49 °F the following week
Japan’s Inpex expects a 75% rise in Global LNG Demand by 2035 (Bloomberg)
Inpex, Japan's largest oil and gas producer expects an increase of LNG Demand by 75% to roughly 34,000 Bcf from 20,000 Bcf of Demand per year in 2035
This could leave the Pacific Coastal region, including much of east Asia, in supply shortfall
This supply shortfall could be supportive of the US efforts to build out LNG export capabilities over the next decade
Get market insights delivered to your Inbox every day!
