Skip to content
Daily First Look
Daily briefThomas Liardon

Crude Edges Higher Despite Reports of Potential Deal; Gas Edges Higher on Two-Week Low Production

Crude edges higher despite reports of a potential US-Iran deal

  • The WTI prompt-month contract rose $0.57 to $76.34/Bbl Wednesday morning (7:30 AM CT)
  • Crude futures moved slightly higher despite Axios reporting that the US, Iran and Oman were close to reaching a 60-day interim agreement aimed at restoring shipping through the Strait of Hormuz
    • Under the proposal, vessels would not be charged tolls or transit fees, with inbound ships using a northern route and outbound traffic traveling through a southern lane
  • However, Iranian state television said the potential agreement between Iran and Oman regarding vessel traffic through Hormuz would not result in the strait reopening immediately
  • Yemen’s Houthis claimed to have struck a tanker near Saudi Arabia’s Yanbu port overnight, creating additional risks for Saudi crude exports through the Red Sea
    • Saudi Arabia has increasingly relied on its Red Sea export route to move barrels that cannot transit through the effectively closed Strait of Hormuz
  • Japanese shipping company Nippon Yusen KK said its latest earnings forecast assumes disruptions to Red Sea shipping routes will continue through the remainder of its fiscal year ending in March 2027

Gas edges higher as production drops to a two-week low

  • Natural gas is up 0.3c to $2.685/MMBtu (As of 07:30 AM CDT)
  • L48 natural gas production slipped 1.3 Bcf/d to 110.1 Bcf/d, the lowest mark over the last two weeks (Criterion)
    • Dry gas production in August so far is still up roughly 2.7 Bcf/d yoy (S&P)
  • Temperature changes were minimal from yesterday
    • Heat is expected to peak in the forecast range around next Tuesday
    • The 11-15 day range (Aug 15-19) is expected to be a bit cooler than average as monsoonal moisture sweeps across the L48 starting in SoCal (CWG)
  • Texas Governor Gregg Abott ordered audit of data center projects (S&P)
    • Abbott has ordered the PUC of Texas and ERCOT to audit all data center applications for grid interconnection
    • ERCOT has 421 GW of large loads seeking interconnection by 2031
      • The extended audit process will slow interconnections, delaying potential natural gas demand growth in the state

Want this in your inbox?

AEGIS market analysts publish research across crude, natural gas, NGLs, refined products, metals, and rates.

Subscribe to research

Previous issues of Daily First Look

This website uses cookies

We use a few essential cookies to make our site work, including one that counts how many reports you have opened. Analytics cookies are used only with your permission, and you can change your mind at any time. Learn more about cookies in our privacy policy.