Daily Energy Report 05.05.2020

Crude Oil Futures for June 2020 settled up $4.17 @ $24.56/bbl trading in a $3.72 range including the overnight-RBOB settled up 7.98/cpg and Heating Oil settled up 9.29/cpg.
Early data regarding OPEC’s April production suggests that it hit 13-month highs in April at 30.25 million barrels per day. The 30.25 mil/bpd depicts a month over month increase of +1.61 mil/bpd. The largest increases were from Saudi Arabia and the UAE, which produced 11.3 mil/bpd and 3.85 mil/bpd respectively. For Saudi Arabia, this is a record. The new production cut deal goes into production on May 1, and the OPEC month over month report showing official April production data will be published on May 13. According to leading market advisors, it will be difficult for countries to come up with such a sharp decrease in production that would start immediately on May 1, given the high volumes OPEC kicked out in April.

Natural Gas Futures for May 2020 settled up $0.141 @ $2.134/mmbtu trading in a .181 cent range including the overnight session. According to EIA data, during the past five years global Liquid Natural Gas trade has increased by upwards of +45.0% -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.