Written Commentary
Markets Lower Ahead of Deadline
April 7, 2026
CRUDE OIL
May Crude Oil pushed through Monday’s contract highs early Tuesday as the market awaited Trump’s deadline for Iran to open up the Strait of Hormuz by 8:00 PM eastern time tonight. So far, Iran has rejected the cease fire proposal the US offered via Pakistan saying a permanent end to the war was necessary. There was a report that Iran’s Kharg Island was targeted with several strikes. OPEC+ has agreed to lift oil output quotas by 206,000 bpd in May, but their ability to do this will depend on re-opening the Strait.
PRODUCTS
Product prices were higher overnight in line with crude oil, as the market awaited the deadline Trump has set for Iran.
NATURAL GAS
May Natural Gas fell to its lowest level since January 16 (the day after it put in its 2026 low) early Tuesday but bounced off that level. For this week’s EIA gas storage report, the early Reuters poll has a range of expectations for a net injection of 43 to 55 billion cubic feet for the week ending April 3. The 6-10 and 8-14 day forecasts show above normal temperatures across most of the lower 48 states, which suggests US storage could rebuild at a faster than normal pace over the next couple of weeks.
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