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First Look - Oil prices edge up, but on track for biggest weekly drop since last year

Oil prices rose on Friday morning but are still on track for the largest weekly decline since last year due to ongoing uncertainty about global demand growth
- WTI for April delivery was up 1.4% at $67.29/Bbl (7:45 AM CT)
- Unpredictable trade policies under President Trump and retaliatory measures from tariffed countries have created market volatility, with US crude set for a seventh consecutive drop, the longest losing streak since December 2023
Saudi Aramco to lower prices for Asian buyers (Bloomberg)
- The price cut comes as OPEC+ begins to ease production volume restrictions
- Saudi Aramco will reduce the price of its Arab Light crude for Asia, its largest market, by 40c/Bbl for April
US Energy Chief requests $20B to replenish the SPR (Reuters)
- The Strategic Petroleum Reserve (SPR), which has a maximum capacity of 700MMBbls, currently holds 395 MMBbls following a sharp decline during President Biden’s administration

Natural gas prices are trading lower today but heading for a weekly gain
- The prompt NYMEX contract is lower by 14c this morning but still up more than 30c this week (8:00 AM)
- Yesterday, the EIA reported a -80 Bcf withdrawal from storage, which put inventories 224 Bcf below the five-year average
Transco seeks approval to put more Southeast pipeline capacity into service (S&P)
- Transcontinental Gas Pipeline is seeking FERC’s permission to put the 150 MMcf/d Southeast Energy Connector project into service
- This project will improve pipeline capacity on Transco, where constraints can sometimes limit flows
- Following this smaller project, Transco’s 1.6 Bcf/d Southeast Supply Enhancement Project is expected to receive an environmental assessment from FERC by November
  - This project is designed to remove constraints between Transco Zone 4 and 5