Daily Energy Report 04.27.2020
Crude Oil Futures for June 2020 settled down $4.16 @ $12.78/bbl trading in a $5.10 range including the overnight-RBOB settled down 1.29/cpg and Heating Oil settled down 3.63/cpg.NYMEX traded WTI futures declined early and often during Sunday evenings trading session on concerns about scarce and dwindling storage capacity and the current global Pandemic induced economic down-turn. WTI futures for June
declined in excess of $3.05/bbl. to $13.89/bbl. on fears that storage at Cushing could reach full capacity soon, while Brent crude was down $ 0.83/bbl. to $19.99/bbl. Global oil futures marked their third straight week of losses last week and
have decreased for eight of the past nine. According to advisors, the market is very concerned of a repeat of negative pricing as Cushing becomes inundated with current relentless production.
Natural Gas Futures for May 2020 settled up $0.073 @ $1.819/mmbtu trading in a .245 cent range including the overnight session. While the Pandemic-led plunge in crude oil prices has grabbed the majority of recent headlines, the collapse in spot month lique fied natural gas prices in Asia has been just as dramatic. Spot LNG prices for delivery to North Asia slipped to
$1.950 per million British thermal units in the week ended April 24 – the lowest on record and also the first time the price has closed below the $2.000/mmbtu mark. The decrease of 71.3% since the pre-winter peak of $6.800/mmbtu is
actually worse than the 70.1% fall in Brent crude oil futures from their Jan. 8 peak this year at $71.75/bbl..