Coquest Daily Energy Report
Crude Oil Futures for May 2023 settled up $4.75 @ $80.42/bbl. trading in a $2.69 range including the overnight-RBOB settled up 7.65/cpg and Heating Oil settled up 4.20/cpg. OPEC and their working allies on Sunday riled oil markets with an announcement that it will reduce its output by an additional -1.16 million barrels per day. Market advisors noted in a report, that with the additional cut, the total output reduction amount from OPEC+ will come in at 3.66 million barrels per day, or 3.7% of total global oil demand. NYMEX traded oil prices had gained +8.0% immediately after the announcement, with traders and marketers noting Saudi Arabia’s share of the cuts would be almost half of the overall total at 500,000/bpd. Russia, meanwhile, said it would extend the production cuts of 500,000/bpd. it announced earlier this year until the end of 2023. The U.S. administration expectedly criticized the move, “we don’t think cuts are advisable at this moment given the current market uncertainties , and we’ve made that clear,” a spokesperson for the National Security Council said.
Natural Gas Futures for April 2023 settled down $0.119 @ $2.097/mmbtu trading in a 0.145 cent range including the overnight session. The Energy Information Administration’s weekly domestic Natural Gas storage report released early last Thursday day morning showed that Natural Gas inventories decreased by -47.0 billion cubic feet for the week ending March 24th, 2023- in line with estimates and within most analysts’ forecasts. According to EIA statistics, the current domestic natural gas storage total stands at 1.853 trillion cubic feet. The 1.853 tcf. represents a surplus, now standing at +31.3 % or +442 bcf. versus the year over year average, while the surplus versus the five year average also continues-now standing at +21.0% or +321 billion cubic feet.
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