WTI futures climb above $80/Bbl as Middle East supply concerns intensify
The prompt-month WTI contract gained $0.97 to $80.57/Bbl on Thursday morning (7:30 AM CT)
US CENTCOM said it struck a supertanker operating deep inside the Persian Gulf near Iran's Kharg Island, the country's primary crude export hub, after the vessel repeatedly disregarded warnings that it was breaching the US naval blockade
Analysts said the location of the strike suggests the US may be expanding enforcement beyond the scope of the first blockade
Iran's attacks on commercial tankers are also threatening the "shuttle run" trade that has become an important workaround for moving crude exports from the Gulf
Under this system, cargoes have been traveling along Oman's coastline before being transferred to larger tankers outside the Strait of Hormuz
Reuters reported that Iran has instructed Yemen's Houthi forces to shut the Red Sea shipping corridor if strikes target the country's power infrastructure
"Markets are nervous, whether or not there will be a soon and lasting solution to this conflict," IEA Executive Director Faith Birol said
The Bal 2026 strip is trading near $77.50/Bbl, while the Cal 2027 strip has climbed above $71.50/Bbl
Gas edges higher as weather forecasts average for late July
Natural gas is up 2.5c to $2.949/MMBtu (As of 07:30 AM CDT)
Power burn fell this morning by 1.3 Bcf/d to 47.4 Bcf/d (Criterion)
The Northeast forecast fell, offsetting gains in the Rockies and South Central
LNG feedgas rebounded off recent lows to 17.8 Bcf/d
Sabine Pass’ Transco ESD work completed, leading gains day over day
Kinder Morgan receives permission to flow gas to upgraded liquefaction train
The approval brought the fifth of 10 trains at the terminal closer to returning to service
The optimization project will bring incremental capacity to the Elba Island facility, bringing feedgas demand from 330 MMcf/d to 400 MMcf/d
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