Written Commentary
CRUDE OIL
July Crude Oil was slightly lower early Tuesday after President Trump said he was holding off a military attack on Iran that was scheduled for Tuesday while efforts to reach a deal continued. This was after the market traded to a new contract high on Monday and the nearby contract reached its highest level since April 30. An Iranian media outlet on Monday reported that the US proposed a temporary waiver of sanctions on the nation’s oil, which was one of the Tehran’s demand for reopening the Strait of Hormuz. The US had not confirmed the offer. A record 9.9 million barrels of oil were shipped from the US SPR last week, according to DOE data.
PRODUCTS
Product prices were lower early Tuesday after reaching new contract highs on Monday, which was in line with the action in crude oil.
NATURAL GAS
July Natural Gas extended its recent rally early Tuesday to reach its highest level since March 31. Recent hot weather across much of the US has raised the possibility of an early boost to electricity consumption for air conditioning. Washington DC is seeing record heart of 97-101 degrees this week. The 6-10 and 8-14 day maps show above normal temperatures expected across most of the US lower 48 except for some normal temperatures on the West Coast and Texas.
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