Daily Energy Report 05.27.2020
Crude Oil Futures for July 2020 settled down $1.54 @ $32.81/bbl trading in a $2.14 range including the overnight-RBOB settled down 5.56/cpg and Heating Oil settled down 1.87/cpg.
Global Crude Oil price rebound from its historic crash last month continues with some OPEC producers even displaying signs of confidence that the market is stabilizing. Nigeria and Algeria- both members of OPEC- have raised the official selling prices for their supply, a possible sign that they believe customers are willing to pay more for their barrels. That would offer some respite after demand was crushed by the fallout from the Coronavirus outbreak. Russia, a key member of the OPEC+ alliance that has pledged record production cuts, expects the market to balance in June or July.
Natural Gas Futures for June 2020 settled down $0.071 @ $1.722/mmbtu trading in a .104 cent range including the overnight session.
Preliminary expectations for this Thursday’s mornings weekly Energy Information Administration Natural Gas storage report calls for an addition of between +102 and +107 bcf for the week ended May 22nd.That compares with an increase of +81 bcf in the preceding week, a build of +114 bcf a year earlier and a five year average injection of +93.6 bcf. Updated weather forecasts show below average temperatures to prevail along both Coasts-including Florida, while the center of the nation and from border-to-border maintain above to much above average conditions over the next six to ten day time frame.