Daily Energy Report 05.14.2020
Crude Oil Futures for June 2020 settled up $2.27 @ $27.56/bbl trading in a $2.78 range including the overnight-RBOB settled up 6.18/cpg and Heating Oil settled up 6.34/cpg.
President Trump on Tuesday said a global increase in oil prices, after a drop in costs because of the Coronavirus crisis, is the “best of all worlds” for the U.S. He also said American energy companies are starting to look “very good” even as gas prices remain low. “Crude Oil prices going up as Saudi Arabia cuts production levels. Our great Energy Companies, with millions of JOBS, are starting to look very good again. At the same time, gasoline prices at record lows (like a big Tax Cut). The BEST of all Worlds, Transition To Greatness” he tweeted.
Natural Gas Futures for June 2020 settled up $0.065 @ $1.681/mmbtu trading in a .105 cent range including the overnight session.
Domestic natural gas production and demand will drop in 2020 and 2021 from record highs last year as government steps to slow the spread of Coronavirus cut economic activity and energy prices, the U.S. Energy Information Administration said in its Short Term Energy Outlook on Tuesday. That would be the first annual decline in production since 2016 and the first time output falls for two years in a row since 2005. The EIA also projected gas consumption would fall to 81.69 bcf/d in 2020 and 79.17 bcf/d in 2021 from a record 84.97 bcf/d in 2019. Thursday morning’s weekly storage report showed a build of +103 bcf