Daily Energy Report 05.11.2020
Crude Oil Futures for June 2020 settled down $0.60 @ $24.14/bbl trading in a $1.91 range including the overnight-RBOB settled down 2.80/cpg and Heating Oil settled down 3.06/cpg.
NYMEX traded WTI futures prices declined during Sundays evening’s trade as a new wave of Coronavirus infections in some countries and the continuing concern over a persistent supply glut seemingly cancelled out the support recently created from supply cuts by the world’s biggest producers. Possible signs of a second wave of infections worried investors as Wuhan on Monday reported its first cluster of infections since the city’s lockdown was lifted a month ago. New coronavirus infections are accelerating in Germany only days after it loosened social restrictions, raising concerns that the pandemic could again slip out of control. South Korea also warned of a second wave of the virus on Sunday.
Natural Gas Futures for June 2020 settled up $0.003 @ $1.826/mmbtu trading in a .087 cent range including the overnight session.
The number of oil and gas rigs operating in the United States is expected to hit an all-time low this week – according to data going back 80 years – as the energy industry slashes output and spending to deal with the Coronavirus led crash in overall fuel demand. According to market advisors, after the last 3 consecutive days of weakness, prices could firm this week if more states begin to ease restrictions and lockdowns. And while nearby and deferred contracts may rally this week, the biggest gains are likely to take place in the further out contract months.