Written Commentary
CRUDE OIL
July Crude Oil was lower early Tuesday as the trade took some note of President Trump’s comment on Tuesday that the Iran was will end “very quickly.” This was supported by Vice President Vance’s comments that the US and Iran have made a lot of progress in their talks and neither side wants to see a resumption of the military campaign. However, we have been down this road before, and the market is skeptical of such statements given the lack of progress so far. The longer the Strait of Hormuz is closed, the greater the impact on supply.
PRODUCTS
Gasoline and diesel prices were lower early Wednesday in line with crude oil. The EIA report will be released this morning.
NATURAL GAS
July Natural Gas was lower early Wednesday after reaching its highest level since March 31 earlier in the session. An above-normal temperature trend over the next 6-14 days across most of the lower 48 US states presents an opportunity for increased cooling demand. LSEG said average gas output in the lower 48 states is running around to 109.3 billion cubic feet per day (bcfd) so far this month, down from 109.8 bcfd in April and a record 110.6 bcfd in December.
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