The WTI prompt-month contract rose $0.64 to $63.03/Bbl on Wednesday morning (7:30 AM CT)
President Trump took to social media to threaten Iran with military action
Trump warned that if Iran refuses to negotiate a deal, “the next attack will be far worse!”
The renewed threats have supported crude prices on Wednesday as the potential risk to Iranian supplies increases
Surrounding Gulf states have emphasized the need for diplomacy, while Saudi Crown Prince Mohammed bin Salman said the kingdom would not allow its territory to be used for military operations
A gauge of the dollar fell to its lowest level in nearly four years on Tuesday after Trump said he was not concerned about a weaker currency
Recent dollar weakness has potentially magnified crude’s rally, suggesting that the observed price strength may reflect a combination of geopolitical risk and broader macro positioning
The American Petroleum Institute reported that US crude inventories fell by 247 MBbls last week, with official government data due later Wednesday
Prompt month Feb natural gas is down -67.7c to $6.277/MMBtu (7: 30 AM CT)
The Feb natural gas contract expires today, and the move lower is exacerbated by low liquidity
March is trading 8c lower, around $3.74/MMbtu
Weather forecasts are shifting milder from the first week of February
Temperatures are currently forecast to warm up relative to this week, but remain below the ten-year average for the next two weeks
Gas production is normalizing, with output back above 100 Bcf/d this morning
Freeport LNG to potentially reschedule cargos due to extreme US heating demand
As widespread cold drove natural gas prices higher, Freeport LNG began reducing feed gas on Saturday (BloombergNEF)
This could reduce LNG exports for a few days
Pipeline deliveries to US LNG export terminals rose Tuesday, halting a four-day decline
Inflows have risen to more than 17 Bcf/d, compared to 14.75 Bcf/d yesterday
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