Crude climbs into weekend as US-Iran conflict intensifies
The WTI prompt-month contract rose $2.07 to $81.02/Bbl on Friday morning (7:30 AM CT)
The US carried out a sixth consecutive night of airstrikes on Iran, expanding its campaign to include bridges and a major rail junction in southern Iran, raising concerns that the conflict is moving closer to critical energy infrastructure
Iran retaliated with missile strikes targeting US military bases in Kuwait, Jordan, Bahrain, and Oman, with Kuwaiti officials reporting damage to a water desalination and power generation facility
Maritime tensions also escalated after Iran attacked another commercial tanker believed to have been transiting the Omani shipping corridor, according to the UKMTO
Despite the heightened military activity, analysts believe crude prices may struggle to extend gains unless the conflict directly disrupts energy infrastructure
Iran would likely encourage Yemen's Houthi forces to intensify attacks on commercial shipping if the US expands its campaign to target Iranian energy infrastructure
Gas steady on stable weather forecast
Natural gas is up 1.7c to $2.875/MMBtu
The L48 weather forecast lacks much volatility, with average temperatures hovering in the high 70s for the next two weeks
There was 0 overall change to the forecasted average temperature over the next two weeks, as warming in the West offset cooling in the East (Criterion)
Mexican exports are expected to gain over the forecast period
Mexican exports are currently sitting at 7.8 Bcf/d, nearly 1 Bcf/d off recent highs
As cooling demand picks back up across northern Mexico, the forecast rebuilds toward 8.3 Bcf/d
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