CRUDE OIL
November Crude Oil was lower early Friday after reaching a new contract high (and trading above $100 for the first time) earlier in the session. A report from the Financial Times that Gulf foreign ministers plan to meet with an Iranian representative on Monday to work out a temporary deal to manage shipping through the Strait of Hormuz offers the first hope of a restoration of oil flows through the strait in some time. Oman and Iran are pushing for an agreement, but for the agreement to work, they would need buy-in from the US as well. In the meantime the Houthis have apparently taken Perim, and island in the Bab el-Mandeb Strait, which gives them more control over flows out of the Red Sea if they hold it.

PRODUCTS
Like crude oil, the products have taken a step back from contract highs early Friday. The US national average diesel price went above $6 a gallon for the first time ever on Thursday, according to GasBuddy, which generated a lot of media attention.
NATURAL GAS
November Natural Gas was lower early Friday and was close taking out Thursday’s lows as well as the contract low from August 17. US gas production remains at record levels. The 6-10 and 8-14 day forecasts show above normal temperatures in the southern and western three quarters of the lower 48, with normal above normal focused on the Midwest and Northeast, but cooling demand is still declining as we move into shoulder season.
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