Daily Energy Report 04.28.2020

Crude Oil Futures for June 2020 settled down $0.44 @ $12.34/bbl trading in a $3.62 range including the overnight-RBOB settled up 1.89/cpg and Heating Oil settled up 2.04/cpg. New York Stock Exchange traded shares of the United States Oil Fund (USO)-the largest exchange traded ETF-dropped 16.0% in morning trading on Monday. The slide came after the fund’s manager, USCF, announced in an SEC filing that
it planned to sell off all of the fund’s current June 2020 oil futures contracts in favor of longer-term futures contracts. The announcement sent WTI prices lower as traders followed USCF’s lead and dumped or fronted their June contracts. By
noon, WTI Crude prices had fallen in excess of -26.0% or $4.40/bbl., to about $12.50/bbl.. Other global oil prices also tumbled, with international benchmark Brent Crude down -7.8% for the morning.

Natural Gas Futures for May 2020 settled down $0.025 @ $1.794/mmbtu trading in a .221 cent range including the overnight session. According to EIA data, during the past five years global LNG trade has increased by upwards of +45% -or 15.2 bcf/d-led primarily by capacity additions in Australia the United States and Russia, which when combined, accounted for more
than 90% of the global growth in liquefaction capacity during this period. In 2019, Australia completed its massive capacity buildout program and became the world’s largest LNG exporter for several months, overtaking Qatar during that
time. Total global trade in liquefied natural gas set another record in 2019, reaching 46.7 bcf/d