The WTI prompt-month contract climbed $3.06 to $73.50/Bbl on Wednesday morning (7:30 AM CT)
Crude futures rallied after President Trump declared the tentative ceasefire with Iran was over, adding that the US would "probably" launch additional strikes against Iran later tonight
Bloomberg reported that US forces carried out strikes on more than 80 targets after Iran launched attacks on multiple merchant vessels the previous day.
Iran reportedly targeted a Qatari LNG carrier and two large crude oil tankers
With both Washington and Tehran accusing each other of violating the memorandum of understanding, the Cal 2026 strip moved above $72.50/Bbl, while the Cal 2027 strip gained more than $1.00/Bbl
Gas moves higher as power demand picks back up
Natural gas is up 4.3c to $3.308/MMBtu (As of 07:30 AM CDT)
Power demand gained over 1.1 Bcf this morning as temperatures picked back up near the 10-year average
Temperatures went from around 5°F above the 10-year average on July 3 to just below the 10-year average yesterday (Criterion)
Permian gas production hits record high
Gas production in Permian has averaged around 24.8 Bcf/d, with output climbing to nearly 25 Bcf/d over last weekend (S&P)
The record highs can be attributed to the new takeaway capacity unlocked by the startup of Kinder Morgan’s GCX expansion
Texas and Gulf Basis strips see pricing shifts
CGM Mainline basis has fallen to multi-year lows over the last few months, down to -$0.43/MMbtu
Transco Z4 Basis has tapered off recent highs, falling from $1.40 to $0.81 from the beginning of July
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