Markets Shrug Off Hormuz Shock As Bears Take Control

Energy markets are shrugging off reports that Iran re-closed the Strait of Hormuz over the weekend with prices moving lower from Friday’s holiday-abbreviated session. Signs of progress in negotiations between the U.S. & Iran in Switzerland (despite fresh threats from the President) may be helping keep buyers at bay, while the weakness in spite of the peace agreement lasting just 2 days sends a clear signal that the bears are in control for now.

18 people are missing and more than 50 reported injured after an explosion and fire at Qatar’s giant Ras Laffan export terminal Sunday night as the facility was attempting to restart operations after being shuttered during the war due to a lack of takeaway capacity. The explosion at the world’s largest LNG terminal was not part of new attacks, but rather a harsh reminder how dangerous the restart process can be for complex facilities, even when they’re not being shot at.

Baker Hughes reported the total U.S. count of active oil rigs held steady at 433 last week, while the natural gas rig count ticked up by 1 to 122. The stable oil rig count snaps a 7 week string of gains that pushed the total to a 1 year high. The Primary Vision count of fracking crews active in the U.S. also held steady at a 1-year high of 192 crews.

The CFTC’s weekly Commitments of Traders report that’s normally released on Friday afternoon was delayed by the holiday and will be out later today. The EIA’s weekly update is still scheduled for its normal time on Wednesday.

Ukraine’s drones struck a 120mb/day refinery in Siberia, more than 1,200 miles from the front lines, in another flex of the country’s increased capabilities to perform long range sanctions. Ukraine’s drones also struck a fuel terminal in Crimea, adding to the fuel supply shortages on the peninsula which has been forced to halt gasoline sales to civilians.

A fire at Marathon’s 630mb/day Galveston Bay (Texas City) refinery prompted a shelter in place order for nearby residents Sunday morning, but the fire was quickly extinguished with no injuries reported. The cause of that fire has not yet been reported.

Meanwhile, Total saw multiple units knocked offline this weekend following a power loss caused by a lightning strike. 36 different units were affected by the sudden shutdown according to the company’s filing with the TCEQ, which suggests that restarting the facility may take some time