Daily Energy Report 06.04.2020
Crude Oil Futures for July 2020 settled up $0.12 @ $37.41/bbl trading in a $1.24 range including the overnight-RBOB settled up 2.97/cpg and Heating Oil settled up 0.95/cpg.
Global crude oil priced dipped during Wednesdays evenings trade on the heels of a failed get together by OPEC and its allies regarding output, with OPEC sources saying, “it would be conditional a deepening of cuts by countries that have not complied with their targets so far”. Saudi Arabia, Kuwait and the United Arab Emirates are not planning to extend voluntary additional output cuts of 1.18 million bpd after June, indicating that crude supply could rise next month regardless of any OPEC+ decision. While according to reports, Russia’s Energy Minister said that the oil market could face a shortage of 3 to 5 million barrels per day by July.
Natural Gas Futures for July 2020 settled up $0.001 @ $1.822/mmbtu trading in a .059 cent range including the overnight session.
While world crude markets have staged a steady and rapid recovery after a deal by the globes biggest producers to curb a surplus, the $600 billion global gas market remains extraordinarily oversupplied. Traders and analysts say the worst may be yet to come as demand falls and storage nears capacity, creating the ideal conditions for negative prices in some parts of the world. Unlike the oil market, there’s been no sign of a coordinated response to address the glut, meaning the fallout could be deeper and longer. Thursday morning’s weekly EIA storage report showed a build of +102 bcf for the week.