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- Daily Energy Market Update April 6,2026
April 6, 2026
WTI is down $1.26 at $110.28 RB is down 5.35 cents at $3.2345 ULSD is down 1.57 cents at $4.3454
Liquidity’s Daily Market Overview
Energies are lower now and are well off the highs seen on the Sunday night opening as Pakistan has put forth a ceasefire proposal to the US and Iran. (Reuters)
Reuters is reporting that the ceasefire plan -- brokered by Pakistan following overnight contacts with U.S. and Iranian officials -- would start an immediate ceasefire followed by talks on a broader settlement to be concluded within 15 to 20 days, Reuters reported. Iran though has has rebuffed any immediate reopening of the Strait of Hormuz, despite having received the peace proposal framework. (Investing.com)
The overnight highs in the energies were made as President Trump tweeted a very aggressive message on Sunday about hitting Iran hard if the Strait of Hormuz is not opened. He threatened to attack power plants and bridges in Iran if the Strait is not opened. The President used expletives on Truth Social to refer to Iran's leadership, threatening strikes Tuesday after a series of past threats and extended deadlines. (NBC News)
Fighting has continued, with Israel, Kuwait and the United Arab Emirates reporting Iranian attacks overnight into Monday. Iran struck Kuwait’s oil headquarters and a major petrochemicals plant in Abu Dhabi over the weekend. (Bloomberg) Israel today struck an Iranian petrochemical facility, which raises the specter of reprisals from Iran. (Market News)
Iran announced Saturday that Iraq would be exempt from its shipping restrictions in the strait, allowing for as much as 3 MMBPD of Iraqi oil cargoes. An Iraqi official struck a cautious note, saying volumes would depend on whether shipping companies are willing to risk entering the strait. The Suezmax Ocean Thunder, an oil tanker that loaded its cargo at Iraq’s Basrah terminal in early March, exited the strait en route to Malaysia, according to tanker-tracking data compiled by Bloomberg. Such vessels can carry about 1 MMBBL of crude. (Reuters)
Fifteen ships have passed through the Strait of Hormuz with Iran’s permission in the past 24 hours, the semi-official Fars news agency reported, adding that’s still about 90% lower than before the start of the conflict. (Bloomberg) Shipping industry experts say some ships are being charged millions of dollars to transit, with some oil tankers forced to take a new route in the Strait of Hormuz through a narrow passage controlled by Iran’s Islamic Revolutionary Guard Corps, according to maritime data shared with NBC News.
OPEC+, at their Sunday meeting, raised their production quotas, in what is seen as a symbolic act, given that the actual physical constraints in the Mideast region preclude the ability to move more barrels. The members of OPEC+ agreed to a modest rise of 206 MBPD for May. (Reuters)
The national average prices for gasoline and diesel at the pump in the US have risen further today. Gasoline at $4.14 is up $1.137 since February 27, while the diesel price of $5.618 is up $1.861 since February 27.
Energy Market Technicals
Momentum basis the DC charts for the RB & ULSD are negative given the drop in the premium that was lost when the April spot futures expired. WTI has positive momentum on the DC chart that looks poised to turn downward in a day or so if prices fall back further.
WTI made a high Sunday night of $115.48. There is further resistance below that at $113.41-113.48. Support lies at 106.62-106.67 and then at 104.78-104.83. The DC chart upper bollinger band intersects at the $110 area.
The spot Brent futures opened Sunday night at a high of $111.89, thus filling the DC chart gap to $111.35 that was left from the expiration of the May futures. Resistance above that comes in at $114.48. Support comes in at 103.76-103.95.
RB May futures have support at the overnight low at 3.2079-3.2092 and then at 3.1858-3.1877. Resistance lies at 3.2934-3.2946 and then at 3.3167-3.3187. The overnight high is 3.3456.
ULSD May futures see support at 4.3097-4.3111 and then at 4.2726-4.2739. Resistance comes in at 4.400 and then at 4.4213-4.4215. The overnight high is well above that at 4.5482.
Natural Gas Market Overview
Natural Gas--NG is up 5.0 cents at 2.850
NG futures are higher now after falling overnight to the lowest spot futures price since August 27,2025. Today's production is down slightly, while today's demand is up some and LNG feedgas demand is firm. Yet, the tone we see from analysts remains a negative one as they focus on the weak demand period and still overall strong US natural gas production --even as LNG feedgas volume continues to rise--however slowly.
US Lower 48 production is at 111.7 BCF/d today, down 0.6 BCF/d overnight, while US Lower 48 states demand is up 1.3 BCF/d overnight, but is down 4.9 BCF/d compared with last week's levels. Today's strength is led by stronger residential/commercial demand as areas of the Northeast are colder today. (Market News)
Over the past two weeks, the near-term temperature outlook has been quite bearish with unseasonably mild temperatures, as per Celsius Energy commentary. But they caution to watch coal to gas switching this spring. Another analyst writes:" The global (LNG) supply disruptions from the war aren’t doing enough to offset what’s happening domestically."
Celsius Energy sees US natural gas inventories having risen over 1900 BCF as of Friday. They added that that is 11 days sooner than the 5 year average (April 14) & 13 days earlier than last year (April 16). Warmer weather forecasts over the upcoming 2 week may put further pressure on Henry Hub until full summer heat triggers cooling demand, as per one other commentary.
This past Thursday saw Golden Pass' LNG facility take in a record amount of gas as it gets set to send out its first cargoes in the coming weeks. Feedgas flows to the facility hit a new record Thursday at 0.43 BCF/d. For Train 1 to fully come online, feedgas demand will be roughly double this amount. On Thursday, Reuters reported that Italy will receive a cargo of LNG from QatarEnergy/ExxonMobil’s Golden Pass facility in mid-June.
CFTC data seen Friday showed money managers raised their net short total in NG futures/options in the week ended Tuesday March 31. They added 13,492 contracts to bring their net short total to 68,022 contracts. This was mostly a result of long liquidation.
Technically NG spot futures tested support at 2.772-2.775 overnight with a low of 2.769. below that support lies at 2.721-2.724. Resistance comes in at 2.943-2.944. Momentum basis the DC chart for NG futures is getting oversold.
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Disclaimer
This article and its contents are provided for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any commodity, futures contract, option contract, or other transaction. Although any statements of fact have been obtained from and are based on sources that the Firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed.
Commodity trading involves risks, and you should fully understand those risks prior to trading. Liquidity Energy LLC and its affiliates assume no liability for the use of any information contained herein. Neither the information nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any opinions expressed herein are subject to change without notice, are that of the individual, and not necessarily the opinion of Liquidity Energy LLC
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