Gulf States Pressing Trump

Supply Flows Resume

Wednesday, June 17, 2026. CRUDE OIL: WTI July futures settled ~$75.39 (Jun 16), live quotes Jun 17 showing $76.30-$76.48. Fade trade accelerating. DEAL STATUS: Preliminary MOU reached Jun 14-15. Virtual signing reported. Formal signing ceremony Friday, Jun 19, Geneva. DEAL TERMS: 60-day ceasefire extension. Strait of Hormuz reopening, toll-free period expected. US naval blockade on Iranian ports lifted. Nuclear talks deferred to follow-up. IMPLICATION: Crude crashed from $90-$100 highs earlier Jun to $75-$76 now. That's $15-$25 drop in 3 weeks. Geopolitical premium gone. Supply flows resume. Oversupply thesis intact. Target was $70-$75. We're there. STRATEGIC POSITIONING: Short any bounces above $80. Target $70. If crude breaks below $70, next target $65. Fade trade complete. Mean reversion delivered. NATURAL GAS: EIA Weekly Natural Gas Storage Report (released Jun 11, covers week ending Jun 5): Total working gas 2,686 Bcf. Weekly net change +108 Bcf injection. Year-over-year 5 Bcf lower than Jun 2025. 5-year average 151 Bcf (+6%) above average 2,535 Bcf. REGIONAL BREAKDOWN: East 514 Bcf (+34, 2.2% above 5-yr avg). Midwest 610 Bcf (+37, 3.9% above 5-yr avg). Mountain 222 Bcf (+4, 29.8% above 5-yr avg). Pacific 304 Bcf (+6, 27.2% above 5-yr avg). South Central 1,037 Bcf (+28, 0.2% above 5-yr avg). SETUP: Storage ample. Injections strong. No weather shock yet. Accumulation zone intact. $3.05-$3.15 prime entry. Next storage report Jun 18 (week ending Jun 12). BOTTOM LINE: Crude—fade trade complete. $75-$76 target zone. Short any bounces above $80. Target $70. Gas—accumulation thesis intact. Storage ample. Accumulate $3.05-$3.15. Target $4.00+. Trade the data, not the headlines.

Technicals: Week 25

Tuesday, June 16, 2026. CRUDE OIL TECHNICALS: WTI trading $80.58-$81.58 range. Open ~$80.96, High $81.53, Low $80.86. Sharp drop from prior days (Jun 12 high ~$87). SETUP: Crude in free fall. Geopolitical premium gone. Watching technical support levels. KEY SUPPORT: $80.24-$80.55 (Classic/Fibonacci S3/S2 pivots, near-term daily support). $82.67 (key near-term support). $85 (major psychological/support zone, floor in June outlooks). $74-$75 (longer-term Fibonacci-based support, 61.8% retracement, 200-day MA proximity). KEY RESISTANCE: $81.22-$81.53 (Classic/Fibonacci R1/R2 pivots, immediate upside targets). $85.09-$87.30 (near-term resistance cluster, key breakout level). $100 (psychological pivot, major reference level). $106-$108 (multi-month resistance zone from prior highs). READ: Crude testing support at $80.24-$80.55. If holds, expect bounce toward $85. If breaks, next target $74-$75. Momentum bearish. Volume declining. Fade trade. Short any bounces above $82. NATURAL GAS TECHNICALS: Henry Hub trading $3.02-$3.15 range. NGN26 contract ~$3.153. TECHNICAL INDICATORS: RSI(14) ~29.9-32.1 (Sell signal, in/approaching oversold below 30-40). MACD(12,26) ~-0.014 to -0.015 (Sell signal, negative histogram, bearish momentum on daily). Moving averages: All 12 periods signaling Sell. Overall: 8-9 Sell signals on daily. PIVOT POINTS: Support S1 ~$3.02, S2 ~$3.016-$3.027, S3 ~$3.008-$3.017. Pivot ~$3.027-$3.045. Resistance R1 ~$3.032-$3.053, R2 ~$3.04-$3.063, R3 ~$3.044-$3.071. READ: Gas oversold on daily. Weekly timeframe shows potential bullish MACD crossover suggesting longer-term momentum improvement despite daily bearishness. Accumulation zone intact. $3.02-$3.05 prime entry. Target $4.00+. BOTTOM LINE: Crude—testing support at $80.24-$80.55. Short any bounces above $82. Target $74-$75. Gas—oversold daily, bullish weekly setup. Accumulate $3.02-$3.05. Target $4.00+. Trade the charts. Respect the levels.

Week 25 Opens: Deal Imminent, Crude Crashes

Monday, June 15, 2026. WEEK 25 OPENS. The deal is done or nearly done. Strait of Hormuz about to reopen. CRUDE OIL: WTI July futures $80.07-$80.77, down 4.8-5.7% on day. Intraday range $80.00-$82.42. Previous close ~$84.88. Earlier in week: $92-$93 (Jun 11), $86-$87 (Jun 12). CATALYST: Geopolitical risk premium evaporating. US and Iran close to finalizing MOU. Both sides agreed on text. Signing could happen in coming days. DEAL TERMS: Strait of Hormuz reopens immediately, no tolls on passage, prewar shipping levels restored within ~30 days. US naval blockade on Iranian ports lifted. Some sanctions waivers allowing Iran to sell oil freely during initial period. 60-day ceasefire extension framework. Nuclear issues deferred to follow-up negotiations. IMPLICATION: Crude crashing because war premium gone. Supply disruption risk that drove prices to $95 evaporating. Thesis was right—geopolitical spikes fade, mean reversion kicks in. NATURAL GAS: Henry Hub spot (Jun 8) $3.10/MMBtu. July futures ~$3.14/MMBtu. August futures ~$3.18/MMBtu. Storage (week ending Jun 5): 2,686 Bcf, +108 Bcf injection. 5 Bcf below year-ago, 151 Bcf (+6%) above 5-year average. Next storage report: Jun 18. SETUP: Gas holding accumulation range. Storage ample. Injections strong. No weather shock yet. STRATEGIC POSITIONING: Crude—fade trade on. Strait reopens, supply flows, prices crash toward $70-$75 range. Short any bounces above $82. Gas—accumulation zone intact. $3.05-$3.15 prime entry. Target $4.00+. BOTTOM LINE: Week 25 opens with crude collapsing on deal news. War premium gone. Mean reversion accelerates. Gas decoupled and holding. Accumulation thesis intact. Trade the data, not the headlines.

Geographic Feature: Peru

Friday, June 12, 2026. PERU ENERGY MARKET: South America's first LNG exporter and modest but strategic global natural gas player. NATURAL GAS PRODUCTION: 2025: 14,769.6 million cubic meters (up from 14,480 in 2024). Primary source: Camisea fields (Blocks 88 & 56). Production stable but constrained by feedgas availability and field maturity. LNG EXPORTS: Peru LNG terminal (Pampa Melchorita): 4.5 mtpa capacity, operating since 2010. 2025 exports: 5,293.6 million cubic meters (up from 5,090 in 2024). Contract structure: ~70% to Mexico's CFE under long-term contracts, balance on spot market. Recent trend: Declines in some periods due to maintenance, technical issues, feedgas constraints. MARKET POSITION: South America's first LNG exporter. Modest global LNG player vs. major exporters (Australia, Qatar, US). Fitch Ratings: Peru LNG S.R.L. IDRs at B, Stable outlook (2025). Liquidity, profitability, leverage tied to operations and LNG market dynamics. STRATEGIC IMPORTANCE: Peru LNG provides Mexico ~70% of its LNG supply under long-term contracts. Camisea fields mature but still productive. No major new discoveries announced. Amazon Basin fields (e.g., Bretana by PetroTal) provide supplementary oil production. CHALLENGES: Feedgas constraints limit export growth. Field maturity requires ongoing investment. Maintenance and technical issues periodically disrupt operations. Spot market exposure creates revenue volatility. THE OUTLOOK: Peru remains stable, modest LNG exporter. Not growth story, maintenance story. Camisea fields continue producing for years but decline curves inevitable. For institutional capital, Peru LNG offers stable cash flows and long-term contracts. Upside limited. BOTTOM LINE: Peru—stable LNG exporter, mature fields, modest growth, long-term contracts, execution risk from maintenance. Defensive energy play in South America. Not frontier opportunity.

Geographic Feature: Madagascar

Thursday, June 11, 2026. MADAGASCAR ENERGY MARKET: Sits on massive untapped oil reserves but remains net importer with minimal commercial production. OIL RESERVES: Total potential ~20 billion barrels of oil in place/resources. Tsimiroro field (Madagascar Oil, Block 3104): 1.7-2 billion barrels heavy oil, 25-year development license (2015), pilot/production since ~2013. Bemolanga field: 16.6 billion barrels ultra-heavy oil/bitumen (~9.8 billion recoverable), one of world's largest undeveloped bitumen deposits, historically partnered with Total. Combined (Tsimiroro + Bemolanga): ~9.9 billion barrels (2022 assessment). USGS undiscovered (Morondava Basin): Mean 5.1 billion barrels, F95-F5 range 1.4-11.8 billion barrels. NATURAL GAS: Proven reserves zero, minimal/no commercial production. Potential >91 billion m³ (older estimates), some exploration wells showed non-commercial gas flows. Interest linked to nearby Mozambique discoveries. PRODUCTION & CONSUMPTION: No significant commercial oil production (pilot-scale only). Consumption ~19,000-19,465 bpd (2024), net importer. Electricity heavily dependent on imported fuels. ENERGY MIX: ~76% of final energy consumption from biofuels/waste. Low electrification and renewable penetration relative to potential. EXPLORATION: Multiple international companies active (onshore/offshore). Madagascar Oil longest-operating player with largest onshore acreage. Historical wells showed light oil and gas potential. THE OPPORTUNITY: Madagascar has reserves but lacks infrastructure, capital, political stability for rapid development. Heavy oil extraction technically challenging/expensive. Bitumen requires advanced technology and significant upfront investment. For patient capital with long-term horizons, frontier play. Execution risk high. BOTTOM LINE: Madagascar—massive reserves, minimal production, high risk, long timeline. Not near-term energy market mover. Speculative frontier play for institutional capital with deep pockets and patience.