Crude Steadies as Traders Assess Diplomacy and Recovering Saudi Flows; Gas Climbs Above $3

Crude steadies as traders assess diplomacy and recovering Saudi flows

• The WTI prompt-month contract rose $0.18 to $90.70/Bbl Wednesday morning (7:30 AM CT)
• Crude futures edged higher after paring earlier losses following President Trump’s comments at the UN General Assembly, which reduced expectations for a US-Iran agreement before the November midterm elections
• • While analysts remain skeptical that an agreement is imminent, Trump’s meeting with Chinese President Xi Jinping on Thursday could generate additional diplomatic headlines
• Saudi Arabia has begun restarting its 7 MMBbl/d East-West pipeline, which could provide some relief to a market still constrained by reduced flows through the Strait of Hormuz
• Goldman Sachs expects Chinese crude imports to remain relatively subdued if prices stay elevated, potentially limiting further gains in the oil market
• • The bank expects imports to increase by roughly 600 MBbl/d in 4Q26 compared with the previous three months
  • “As a result we continue to view a possible escalation of strikes on Mideast crude production and export infrastructure, not higher China imports, as the main upside risk to our crude price forecast,” Goldman analysts said
• Domestically, the American Petroleum Institute reported a 1.8 MMBbl increase in crude inventories, while gasoline and distillate stocks declined

Gas prompt climbs back above $3

• Natural gas is up 9.4c to $3.059/MMBtu (As of 07:30 AM CDT)
• Weather cooled in the overall L48, led by losses in the Midwest and South Central (Criterion)
• Prompt and Winter 26/27 have moved around 9c higher since last week, while Summer 27 and Winter 27/28 have stayed flat
• Despite Cove Point going offline, power and rescom demand strengthening have created some upward momentum for Henry Hub
• • Power demand is currently 4.3 Bcf/d higher than the 10-year average
  • Rescom demand is also elevated to the 10-year average, up 1.7 Bcf/d over the normal (S&P)

Cheniere clears environmental review for its Corpus LNG expansion project (S&P)

• Cheniere cleared a regulatory milestone for their 3.2 Bcf/d expansion project to their Corpus Christi LNG facility
• The project will add four liquefaction trains and two storage tanks
• They also are seeking approval for a related 2.75 Bcf/d pipeline expansion in San Patricio County to increase delivery capacity to the facility
• They are targeting FERC approval by May 2027, and targeting exports by early 2030s