Crude Flat as US Reiterates Economic Pressure Campaign; Gas Moves Higher on Mixed Forecast Changes

Crude flat as US reiterates economic pressure campaign

• The WTI prompt-month contract slipped $0.05 to $81.20/Bbl Friday morning (7:50 AM CT)
• Treasury Secretary Scott Bessent said the US intends to intensify economic pressure on Iran while maintaining its naval blockade of Iranian ports
• • The market remains tilted to the downside as Washington appears to favor economic measures over renewed military action, according to Arne Lohmann Rasmussen of Global Risk Management
• Meanwhile, the UAE Foreign Ministry said Iran targeted two vessels transiting the Strait of Hormuz, while overall traffic through the waterway remained constrained
• With no major catalyst currently shifting the outlook, crude (Brent) is likely to remain rangebound between $80 and $90/Bbl, according to Saul Kavonic of MST Marquee

Gas moves higher on mixed weather changes

• Natural gas is up 3.5c to $2.762/MMBtu (As of 07:50 AM CDT)
• Overall L48 temperature forecasts shifted slightly higher this morning, up 0.5°F (Criterion)
• The Rockies and South Central regions gained, while the Southeast region cooled
• This cooling in the Southeast comes as Southeast basis prices sit close to 6-month highs on hot weather
• • Southeast demand averaged 17 Bcf/d from Aug 10-12, up around 2 Bcf from levels seen Aug 1-9
• Canadian imports fell 1.2 Bcf/d this morning to 4.5 Bcf/d, a fresh two-week low (Criterion)

MISO issues hot weather alert for its South Region (S&P)

• The advisory is effective from Aug 12 - Aug 16 for the portion of MISO’s footprint that covers Southeastern Texas, Louisiana, and parts of Arkansas and Mississippi
• MISO forecasts its southern region peakload at 33.5 GW, around 2 GW higher than this month’s average so far