Oil is trading lower near $78.60, reversing some gains from yesterday
Rangebound prices have led to a drop in implied volatility, with Brent and WTI second month volatility falling to the lowest level since September
Red Sea attack leads to fatalities (BBG)
Attacks on shipping in the Red Sea escalated yesterday after a vessel was struck by a missile, killing three people
The US issued a statement saying, “The Houthis have killed innocent civilians by continuing their reckless attacks against international commercial shipping, which impacts countries throughout the world”
The oil market continues to see risk premium resulting from the attacks, as ships have been forced to avoid the waterway, leading to higher freight rates
Natural gas prices are trading lower, around $1.90, extending losses from yesterday
Production remains lower, sliding to 99.68 Bcf/d as of this morning's nominations
Canadian imports are down materially over the past week, near a two-year low of about 3.6 Bcf/d
The EIA will release its weekly natural gas storage report today, with a median analyst expectation of a -37 Bcf draw, according to the Bloomberg survey
