The WTI prompt-month contract declined $1.21 to $64.21/Bbl as of 7:30 AM CT Thursday, pulling back from recent highs as traders pared geopolitical risk
The US and Iran are engaged in a third round of nuclear negotiations in Geneva, with Oman’s foreign minister describing the latest exchanges as “constructive” and said new proposals were put forward by both sides
Negotiators paused for consultations and are expected to reconvene later today, underscoring that talks remain active but unresolved
Analysts at Goldman Sachs estimate that roughly $5–$6/Bbl of geopolitical premium tied to potential US military action against Iran is already embedded in current prices
OPEC+ delegates signal possible output increase (Bloomberg)
Several OPEC+ delegates indicated the group is likely to move forward with a gradual return of curtailed barrels when it convenes this weekend to assess April production policy
Discussions have centered on a potential 137 MBbl/d increase, consistent with the incremental adjustments implemented late last year
Any decision to add supply would come against a backdrop of rising non-OPEC production growth, reinforcing concerns about looser balances
Natural gas slides -7.7c to $2.791/MMBtu on contract roll (As of 07:30 AM CT)
March contract futures settled yesterday, and today is the first day of April prompt month trading
Weather forecasts shifted significantly warmer today across the L48 as we begin to see spring weather
There was significant warming in the Northeast and Midwest forecasts, with an added total of approximately 83 °F across the forecast period from yesterday in these regions (Criterion)
By late next week temperatures should transition to an above normal pattern
Production held near 107.7 Bcf/d this morning, but lingering freeze off issues in the Appalachia subside over the weekend
The EIA will release its weekly natural gas storage report this morning, with a median expectation of a -50 Bcf withdrawal, according to the Bloomberg survey
The five-year average withdrawal for the corresponding week is -168 Bcf
Oneok and partners secure long-term contracts for Eiger Express Permian gas Pipeline (S&P)
The 3.7 Bcf/d Permian Basin to Katy Hub natural gas pipeline is now under long-term contracts, according to a company executive
The pipeline is now 100% contracted for a minimum of 10 years
Oneok expects Permian production to grow 1 Bcf/d per year, and have contracted some capacity on Eigar to provide an outlet for it's Permian customer's gas
Get market insights delivered to your Inbox every day!
