Crude Rises as Iran-Oman Approach Hormuz Deal; Gas Prices Stable as Midwest Cooling Demand Weakens

Crude rises as Iran and Oman near Strait of Hormuz deal

• The WTI prompt-month contract rose $1.00 to $76.22/Bbl Thursday morning (7:45 AM CT)
• Iranian Deputy Foreign Minister Kazem Gharibabadi said the parties have reached a preliminary understanding on nearly all issues discussed, including proposed entry and exit routes for maritime traffic
• However, he stressed that a bilateral agreement with Oman would not automatically result in the full reopening of the Strait of Hormuz, noting that the US is not involved in the arrangement
• Shipping risks across the region remain elevated, with the UK Navy reporting that a tanker heard explosions while passing through the strait near Oman, while the Houthis claimed to have targeted a Saudi oil tanker in the Gulf of Aden
• Despite the continued attacks on commercial vessels, traders appear reluctant to add more risk
• • “Oil prices are trending higher today as flows through the strait remain restricted and ongoing strikes on vessels continue, but the upside is capped with uncertainty if a deal between the Iran and Oman can be reached,” said UBS Group analyst Giovanni Staunovo

Gas prices are stable on quiet weather and supply changes

• Natural gas is down -2.7c to $2.661/MMBtu (As of 07:30 AM CDT)
• Overall L48 temperature change was minimal day-over-day, however the Midwest did continue to cool
• • Chicago, for example, is expected to cool to highs of just 75°F from Aug 13-20 (CWG)

Williams acquires Momentum Midstream (S&P)

• Williams has agreed to acquire Haynesville Shale operator Momentum Midstream
• The company looks to pursue opportunities linking Haynesville Shale production with growing LNG demand
• The company announced two expansion projects related to the acquisition
• • The first, a 2.25 Bcf/d Delta Access expansion along the Transco Gas Pipeline to enter service Q1 2029
  • The second, a 750 MMcf/d expansion to the Shelby trough Connector, which connects Haynesville gas to Gillis, LA