The WTI prompt-month contract gained $2.30 to $80.44/Bbl on Tuesday morning (7:30 AM CT)
WTI futures climbed above $80/Bbl after the US reinstated a naval blockade and Iran launched attacks on oil tankers transiting the Strait of Hormuz
The UAE reported that two of its "dark" tankers were hit while traveling through the southern Omani shipping corridor
Bloomberg reported the vessels had been operating with their transponders switched off to reduce their visibility, a tactic that has become increasingly common in recent weeks and has helped support higher crude flows through the Strait
The renewed security risks could discourage tanker traffic through Hormuz in the near term, with some shipowners potentially diverting cargoes to alternative routes, including the Red Sea
That alternative also carries risks, however, as the Yemeni Houthis and Saudi Arabia have resumed exchanging strikes, raising the prospect of a broader regional conflict that could threaten both Saudi oil exports and shipping through the Red Sea
The Cal 2026 strip is trading above $76/Bbl, while the Cal 2027 strip has slipped below $71/Bbl
Gas Slips further on bearish demand revision
Natural gas is down -2.7c to $2.87/MMBtu (As of 07:30 AM CDT)
Criterion revised demand down 7 Bcf/d cumulatively over the forecast period
L48 average temperatures are expected to briefly move above the 10-year average tomorrow before settling back on the 10 year average throughout the forecast period
L48 feedgas demand is at 18.2 Bcf/d as Sabine Pass and Freeport continue to grapple with maintenance (Criterion)
CAISO thermal stack expands, reducing reliance for gas-fired power generation
Renewable generation reached 18.5 GW at 2:25 PM, while natural gas was at 13.2 GW at the same time
On June 15 at 1:40 PM, renewable power generation hit a high of 26.8 GW, while natural gas was at 3.2 GW
Solar has topped CAISO’s fuel mix for the last four months, and is leading July market share at 37.8% (S&P)
PJM Interconnection sets new all-time peakload record during early July heat wave
PJM reported a peakload record of 168.158 GW on July 2, spurred on by record breaking air temperatures (S&P)
The previous record was set 20 years ago at 165.563 GW
Gas made up around 43% of the fuel mix when the record was set, followed by Nuclear and Coal at around 20% and 17% respectively
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