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First Look - WTI extends gains as US ramps up sanctions on Iranian crude flows

WTI climbs on new sanctions targeting Iranian crude flows (Bloomberg)
- The WTI prompt-month contract rose $1.15 to $63.62/Bbl (7:45 AM CT), after the US Treasury imposed sanctions on Chinese refiner Shandong Shengxing Chemical Co.
- The refinery allegedly handled over $1 billion worth of Iranian crude, violating US sanctions
- Iran also warned that nuclear negotiations with the US could collapse if the Trump administration “moves the goalposts”
China increases oil imports from Canada as tensions rise with US
- Chinese crude imports from Vancouver surged to a record 7.3 MMBbls in March, with April imports expected to surpass that (Vortexa)
- In contrast, Chinese imports of US crude have plunged to just 3 MMBbls per month from a peak of 29 MMBbls in June
- The shift was triggered by the May startup of the Trans Mountain Pipeline Expansion (TMX), which increased access to Canadian Pacific export routes
- The trend accelerated following Trump’s trade policy threats and tariff rhetoric
Demand outlook weakens as analysts trim 2025 forecasts
- A Bloomberg survey of 12 forecasts shows 2025 global oil demand estimates have been revised down by an average of 320 MBbl/d
- The cuts reflect slower economic growth and increasing geopolitical headwinds

Natural gas prices head for a third weekly decline
- Prompt Henry Hub prices are down about 30c this week, bringing total losses over the past three weeks to nearly $1
- The EIA is expected to announce a 23 Bcf injection into underground storage, according to the Bloomberg survey
- Temperatures over the next two weeks are forecast to be above the ten-year average and trend toward 65 °F on average for the Lower 48
Woodside moves closer to Louisiana LNG FID (Bloomberg)
- Woodside has signed a deal to supply Uniper with LNG from its planned Louisiana LNG export project
- This deal represents another milestone on Woodside’s path toward making a final investment decision for the project
- Louisiana LNG, previously known as Driftwood LNG when owned by Tellurian, will have a capacity of 3.7 Bcf/d and is expected to start production in 2028
Trump halts NY offshore wind project (Bloomberg)
- The Trump administration has halted work on the Empire 1 offshore wind project in New York, which was slated to enter service in 2027
- While this project was only 810 MW, the move threatens to spook developers of renewable generation assets