Daily Energy Report 06.11.2020
Crude Oil Futures for July 2020 settled down $3.26 @ $36.34/bbl trading in a $3.68 range including the overnight-RBOB settled down 9.11/cpg and Heating Oil settled down 8.50/cpg.
According to predictions made in a report published Wednesday by the Institute for Economics and Peace, the impact of the ongoing Coronavirus may ‘result in the collapse of the shale oil industry in the U.S., unless oil prices return to their prior levels.’ While globally the price of crude oil has begun to recover from its lows-having crashed into negative territory in April -analysts at Goldman Sachs warn in a Tuesday note that the recent rise in the oil price has been overdone and forecast a drop for Brent crude oil prices to $35.00/bbl. from around $43.00/bbl. within just a few weeks.
Natural Gas Futures for July 2020 settled up $0.033 @ $1.813/mmbtu trading in a .134 cent range including the overnight session.
Global consumption of natural gas will drop this year by the most in history-according to the International Energy Agency-as measures to contain the spread of coronavirus lead to an unprecedented demand shock. The IEA said on Wednesday that the effects of the pandemic, combined with a mild winter in the northern hemisphere, will cause global natural gas consumption to decline -4.0% in 2020, or 150/bn cubic metres, with the impact spanning every region in the world. Such a fall would be twice as severe as that registered after the global financial crisis in 2009, when demand fell -2.0%. Thursday morning’s weekly Energy Information Administration natural gas storage data showed a build of +93 bcf for the week.
