Written Commentary
CRUDE OIL
October Crude Oil was higher early Monday on the resumption of hostilities between the US and Iran over the weekend. The US struck two launchers on Iran’s Larak Island in the Strait of Hormuz on Sunday, and Iran’s Revolutionary Guards Corp said they attacked two US air bases in Jordan in response. Shipping data indicated five vessels per day crossed the strait over the weekend. The United Kingdom Maritime Trade Operations agency said on Sunday that a tanker had been struck by a projectile while entering the strait on Saturday. President Trump said on Sunday that oil from a recently struck deal with Venezuela will be used to replenish the SPR. Saudi Arabia is likely to raise its official selling prices (OSPs) for crude oil bound for Asia in October, a Reuters survey showed, after Middle East spot crude markets rallied on tighter supplies and firm demand. The Baker Hughes rig count showed US oil rigs in operation were down 5 rigs to 447 last week, the biggest weekly decline since March.
NATURAL GAS
October Natural Gas was higher overnight, after first falling below Friday’s low, forming an outside day. The 6-10 and 8-14 day forecasts show above normal temperatures for most of the US out through September 13, which should help support late season cooling demand and keep weekly builds below average for another couple of weeks. The offsetting factor is strong US production.
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