Market Insights > First Look

First Look - Oil rally fades as markets eye US tariff rollout

WTI prompt-month contract was down 37c to $70.83/Bbl (7:45 AM CT)
- Several tariff proposals are under consideration, including a tiered system with flat rates and a reciprocal plan
  - Oil traders are concerned these measures could hinder global growth and weigh on prices
- The American Petroleum Institute (API) reported a 6 MMBbls build in US crude inventories last week
  - Cushing, OK stockpiles rose by 2.2 MMBbls—potentially the largest weekly build since January 2023 if confirmed by EIA data later today
- A bipartisan group of US senators introduced a sanctions package aimed at penalizing Russia and its crude buyers if President Putin refuses to enter ceasefire negotiations
Seaborne oil flows increase ahead of OPEC+ supply boost (Bloomberg)
- Global seaborne oil shipments rose to 39.92 MMBbl/d in March, up 119 MBbl/d from February
- The rise precedes OPEC+ plans to increase production by 138 MBbl/d in April

Natural gas is trading higher, with prompt prices remaining above $4/MMbtu
- Gas production was lower again today, driven by pipeline maintenance
- LNG feedgas demand is sharply lower today due to a drop at Sabine Pass
Huge data center planned for former Pennsylvania coal plant (BBG)
- A natural gas-powered data center is being planned for the former site of the Homer coal plant, which was Pennsylvania’s largest coal plant until its retirement
- The plan includes on-site generation of as much as 4.5 GW, which would equate to about 900 MMcf/d of gas demand, with supply sourced from the nearby Marcellus basin
- GE Vernova will provide seven gas-fired turbines for the project, with deliveries expected to start next year
- Specifics around how the gas will be sourced were not mentioned, although the site is in close proximity to both the Columbia Gas Transmission and Texas Eastern Transmission pipelines
  - The buildout of data centers could benefit local gas basis prices in the Northeast