Written Commentary
CRUDE OIL
October Crude Oil was significantly lower early Tuesday as the market viewed Treasury Secretary Bessent’s sanctions announcement on Monday as less forceful as some had feared. Warnings were given to those nations/entities that purchase oil from Iran, but there was no immediate action taken. The apparent shift to economic pressure instead of military conflict ads a bit of calm. Iran has threatened retaliation, but so far they have avoided any new missile and drone attacks on energy and other infrastructure in Gulf nations.
PRODUCTS
Product prices are lower today with both markets backing off from their recent contract highs.
NATURAL GAS
October Natural Gas was lower early Tuesday after a rally on Monday failed to close a gap from late July. The market continues to chop around since putting in a contract low earlier this month. For EIA storage report this week, the early Reuters poll has expectations for US natural gas in storage ranging from +22 to +27 billion cubic feet for the week ending August 21 versus a five-year average for the week at +33 bcf. The 6-10 and 8-14 day forecasts show above normal temperatures over most of the lower 48, with the below normal over the PNW and northern California and near normal in New England. This should keep cooling demand above normal
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