- WTI is up 48c to $41.21/Bbl, and Brent is up 28c to $43.52/Bbl
- Oil futures rose after President Donald Trump said the trade deal with Beijing was “fully intact” following comments made from a trade adviser that were taken as an end of the agreement
- West Texas Intermediate initially dropped by 2.4%, but rallied Tuesday morning to above $41/Bbl
- Members of OPEC+ that have been producing more oil than quotas allow are now starting to fall in line (Bloomberg)
- Nigeria, Angola, Gabon and Brunei have submitted plans to the OPEC secretariat in Vienna this week showing that output will be throttled back, according to delegates who asked not to be identified (Bloomberg)
- OPEC and its partners have committed to cutting supply by 9.7 MMBbl/d, about 10% of global production, until at least the end of July
- Natural gas is down 1.7c to $1.647/MMBtu
- 40-45 U.S. LNG cargoes slated for August delivery have been cancelled
- This is near the cargo count cancelled for July delivery, up from 20-30 U.S. LNG cargoes cancellations in June
- Cancellations of this scale equate to around 4 Bcf/d in demand
- The Trump administration has taken the final step to allow rail shipments of LNG
- The U.S. Pipeline and Hazardous Material Safety Administration published the rule late last week for shipments of LNG
- This ruling could cause an uptick in LNG demand, allowing buyers in closer proximity to access the fuel at a lower price than what would otherwise be paid using alternative transportation methods
