Oil Rises as Markets Assess Fragile Truce; Gas Falls as CDDs Pull Back

Oil rises as markets assess fragile Iran-Israel truce

• The WTI prompt-month contract rose $1.36 to $91.90/Bbl on Monday morning (7:36 AM CT)
• Crude prices remained supported despite Iran signaling an end to its recent military campaign against Israel
• • Iranian media reported that Tehran warned any renewed Israeli military action, including operations in southern Lebanon, could trigger a stronger response
• President Trump said on Truth Social that both sides appear interested in reaching an immediate ceasefire following several days of cross-border strikes
• Yemen’s Houthi movement announced plans to prohibit Israeli-linked vessels from transiting the Red Sea, raising concerns over regional shipping security
• A senior US administration official said Washington is exploring ways to direct certain Iranian assets toward reconstruction efforts in Gulf countries affected by the recent conflict

Gas falls as CDDs leave the forecast

• Natural gas is down -8.8c to $3.141/MMBtu (As of 07:51 AM CDT)
• The L48 shed over 10 CDDs across the forecast range from Friday (Criterion)
• The cooling was centered in the Midcon and Northeast regions, while the Rockies and West regions warmed(CWG)

US feedgas demand rises as Cameron LNG completes planned Maintenance

• Cameron LNG operator confirmed last Thursday that it had completed planned maintenance work at the facility
• Overall, US LNG feedgas flows have partially recovered from 16.8 Bcf/d on June 2 to 17.7 Bcf/d in nominations this morning

LNG Project costs are rising (NGI)

• Despite increased interest in offtake agreements, LNG project developers are dealing with increased price for material, labor, and other inputs
• 2026 is estimated to have the lowest volume of LNG Project FIDs since 2020