Crude Falls on Reports of Potential Framework Agreement

Crude falls on reports of potential US-Iran framework agreement

• The WTI prompt-month contract dropped $7.65 to $94.62/Bbl on Wednesday morning (7:30 AM CT)
• According to Axios, the White House believes it is nearing a preliminary agreement with Iran in the form of a one-page memorandum of understanding aimed at ending the conflict and establishing a path toward broader nuclear negotiations
• Iran pushed back on the reports, with the semi-official Iranian Students’ News Agency describing the Axios report as speculation intended to shape public perception
• • Iranian officials reportedly viewed parts of the proposal as excessive and unrealistic, saying several provisions had already been rejected by Tehran in recent days
• President Trump also announced the US would suspend Project Freedom, the naval effort designed to assist commercial vessels through the Strait of Hormuz, while diplomatic discussions continue
• • On Tuesday, Iranian President Masoud Pezeshkian said the US position remained unrealistic and reiterated that Tehran would not accept what it described as unilateral demands
• The Cal 2027 strip eased from recent highs but remained firmly above $70/Bbl, while the Cal 2028 strip slipped back below the $70/Bbl level
• Uncertainty surrounding the timeline for restoring flows through the Strait of Hormuz continues to dominate sentiment, leaving geopolitical developments as the primary driver of price action rather than underlying market fundamentals

Natural gas inches up as demand ticks up

• Natural gas is up 1.3c to $2.78/MMBtu (As of 07:30 AM CDT)
• Today’s demand ticked higher again as rescom’s 2.5 Bcf/d gain outweighed Power’s 1.4 Bcf/d loss (Criterion)

Energy Transfer’s Hugh Brinson Pipeline on track for early 3Q26 first flows ahead of 4Q26 ISD

• Phase two, slated for 1Q27, is expected to add 2.2 Bcf/d of takeaway capacity to the Permian

Williams Upsizes Transco’s Power Express from 689 MMcf/d to 750 MMcf/d

• The upsize, described in their Q1 earnings call, will deliver incremental capacity into Virginia North of CS 165
• The project status remains at signed customer agreements, and FERC filing has not yet been completed

SSE on track following February construction start

• Transco’s 1.6 Bcf/d expansion is slated for 3Q27

Energy Transfer approves new 625 MMcf/d Springerville Lateral off Transwestern

• The pipeline will extend south from Transwestern system to serve new gas-fired plants expected to replace two coal-fired units