Oil is trading slightly higher, around $86.50, reversing some losses from yesterday
Officials in Israel reportedly said that ceasefire talks are making progress after saying they would withdraw some troops yesterday
Saudi Arabia increased the price of its exports to Asia for the second consecutive month
Vitol sees oil trading between $80-100 this year on strong demand (BBG)
According to Vitol, the world's largest independent oil trader, prices are likely to stay between $80 and $100/Bbl in 2024
Consumption growth is expected to be robust while OPEC continues to remove supply from the market
The company said that while Chinese oil demand is expected to continue to grow in the near term, they expect it to peak “fairly soon”
Iran says it will not block Hormuz Strait (BBG)
The head of the Islamic Revolutionary Guard Corps said while they have the option of blocking the Strait of Hormuz, they choose not to
Iran has threatened to retaliate against Israel following the bombing of the Iranian embassy in Syria last week
This has contributed to the geopolitical risk premium in crude oil, as it risks a wider regional conflict, which could disrupt supply
Natural gas prices trade higher amid lower production, even as spring weather remains mild
May ’24 Henry Hub is up 3.2c this morning to trade around $1.876/MMBtu
Today's Euro Ensemble indicates temperatures staying at or above normal into late April across the Northeast, Midwest, and South-Central regions, with this week's temperatures ranging between 50 to 70o F
Plaquemines LNG pipeline project cleared to start service (NGI)
The FERC has authorized Enbridge's Texas Eastern Transmission to start service on the Venice Extension pipeline project, aiming to transport 1.3 Bcf/d to the Plaquemines LNG export facility
The project will include upgrading existing compressor stations and building new ones across multiple parishes to support the expanded pipeline system
The Plaquemines LNG facility, with its first phase approved in 2022 and the second phase sanctioned last year, could start LNG production as early as this summer
The facility will also be supplied by the Gator Express pipeline system, capable of delivering nearly 2 Bcf/d of natural gas
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