Daily Energy Report 05.18.2020
Crude Oil Futures for June 2020 settled up $2.39 @ $31.82/bbl trading in a $3.79 range including the overnight-RBOB settled up 5.56/cpg and Heating Oil settled up 8.60/cpg.
NYMEX traded WTI Crude Oil prices-along with all global energies- climbed by almost $3.00/bbl a barrel to $32.32/bbl. during Sunday evenings trade-the highest in more than a month-supported by ongoing output cuts and signs of gradual recovery in fuel demand as more countries ease curbs imposed to stop the current Coronavirus pandemic from spreading. According to leading market advisors, oil prices may show further upside momentum as the easing in mobility restrictions grows. The June 2020 WTI futures contract expires on Tuesday but there has been no sign of WTI repeating the historic plunge below zero as seen last month on the eve of the May futures contract’s expiration.
Natural Gas Futures for June 2020 settled up $0.137 @ $1.783/mmbtu trading in a .149 cent range including the overnight session.
Even before the current crisis (Jan 19) natural gas prices were unusually low for the time of year as they slipped under $2.000/mmbtu for the first time in more than 3 years as supply exceeded demand due to a mild winter, a slowdown of economic growth in the U.S., China-and the rest of the world-as well as a glut in liquid natural gas thanks to new export projects coming online in the U.S., Africa and Australia. Market participant’s note: the onset and subsequent spread of COVID-19 is turning things from bad to worse. Domestic electricity demand is beginning to rapidly decline due to Coronavirus-related containment measures.