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First Look - Oil prices rebound as global equity markets selloff cools down

Oil prices climb on Tuesday morning as global equity markets show signs of moderation. WTI for April delivery rose to $66.90/Bbl (7:40 AM CT), recovering from Monday's dip that brought it near last week's 22-month low (Bloomberg)
- The U.S. dollar also weakened, making oil more attractive to investors
- Prices have fallen nearly 20% from mid-January highs, pressured by factors like OPEC+ supply increases, Trump tariffs, and slowing demand from China
- US Energy Secretary Chris Wright expressed support for US sanctions on Iranian oil production, adding some bullish sentiment
  - At the CERAWeek conference, executives from supermajors backed President Trump’s plans to boost US oil production and reinforce energy dominance
Kazakhstan to reduce production in OPEC+ agreement
- Kazakhstan will cut its oil output to 1.5 MMBbl/d, down from a record-high 2.12 MMBbl/d in February, according to Deputy Energy Minister Aliberk Khamauov (OilPrice)
- OPEC+ plans to bring back 138 MBbl/d of production in April as members like Kazakhstan and Nigeria continue to overproduce
  - Russian Deputy Prime Minister Alexander Novak suggested that OPEC+ might adjust production plans if the market becomes unfavorable
  - Kazakhstan’s Energy Minister Almasadam Satkaliyev also noted that the final decision depends on market conditions

Natural gas is slightly higher this morning as prices remain strong
- The April contract is up 6c to $4.55/MMbtu (8:20 AM)
- The Summer ’25 strip is up 8c to $4.80/MMbtu, and the Winter ‘25/’26 strip is higher by 8c to $5.25/MMbtu
Transco seeks FERC approval for Texas-Louisiana pipeline (S&P)
- Transcontinental Gas pipeline is seeking authorization to start full service in April for a 364 MMcf/d pipeline project
- The project is designed for EOG to move gas to a pooling point in St. Helena Parish, Louisiana
- Additional capacity between Texas and Louisiana should support Houston Ship Channel basis prices as supply is routed away towards Louisiana
Ontario to implement electricity tariff despite US delay (S&P)
- The Canadian province of Ontario will move forward with a 25% tariff on electricity exported to the US starting March 10
- This move comes despite the US delaying Canadian tariffs until April 2
- Ontario Premier Doug Ford said, “If we have to, we won’t hesitate to increase the charge or shut the electricity off completely,”