WTI Tops $90/Bbl as Houthi Attacks Deepen Supply Concerns

WTI climbs above $90/Bbl as Houthi attacks deepen supply concerns

The WTI prompt-month contract gained $3.77 to $90.60/Bbl Thursday morning (7:30 AM CT)
Yemen's Houthi forces said they launched missile and drone attacks against two Saudi oil tankers in the Red Sea, raising concerns that another key Middle East shipping route could face disruptions
- Saudi Arabia has redirected more crude exports through Yanbu, its main Red Sea export terminal, leaving about 2.5 MMBbl/d of exports potentially vulnerable to Houthi attacks, according to Rystad Energy
- In one of its upside price scenarios, Goldman Sachs estimates Brent could climb above $120/Bbl in 4Q if disruptions to the Strait of Hormuz persist
Elsewhere, the US conducted a 12th straight day of strikes against Iranian military targets overnight, while Iran responded with attacks on US military facilities in Kuwait and Jordan
Rhetoric also continued to escalate after Iranian Parliament Speaker Mohammad Bagher Ghalibaf warned, "The equation of this war is clear: either everyone or no one. If we cannot sell oil in the region, no one will sell oil,"

Gas climbs as the Northeast and Midwest warm

Natural gas is up 6.3c to $2.988/MMBtu (As of 07:30 AM CDT)

The Northeast and Midwest led the latest forecast revision higher, with temperatures increasing a combined 22°F (Criterion)

As a result, the two-week Lower 48 temperature pattern has moderated toward seasonal norms
Above-average warmth persists across the West, Rockies, and South Central, while the Northeast and Midwest are now forecast to be closer to, or slightly below, average temperatures (CWG)

Tropical storm Bertha’s path shifted more South, putting it on a collision course with the Rio Grande Valley

The shifting storm path is moving away from key areas associated with LNG production
Models have it as a low-intensity tropical storm, with wind speed expected to fall below 35 kt over the next 24 hours

EQT highlights inventory depth of Appalachian producers in earnings call

They estimate roughly 1/3 of Southwest Appalachian supply will struggle to hold flat by decade-end, requiring higher gas prices to justify drilling less economic zones