Daily Energy Report

Daily Energy Report for Jan. 20, 2020

 

Crude oil futures for February 2021settled up $0.26 @ $53.24/bbl, trading in a $0.74 range including the overnight session. RBOB settled up 0.58/cpg and heating oil settled up 0.17/cpg.

In 2019, OPEC net export revenues decreased by -17.0% compared with the estimated 2018 net export revenues. They were less than half the estimated record high of the more than $1.2 trillion earned in 2012. The estimated 2019 revenues declined because of lower crude oil prices and lower crude oil production levels. This was the result of an increase in crude oil production disruptions and voluntary curtailments of crude oil output among OPEC members. Saudi Arabia accounted for the largest share of total OPEC earnings in 2019. The EIA estimates earnings of $202 billion for Saudi Arabia, representing more than one-third of total OPEC oil revenues.

Natural gas futures for February 2021 settled down $0.007 @ $2.539/mmbtu, trading in a .123 cent range including the overnight session.

According to Energy Information Administration data, Henry Hub natural gas spot prices averaged $2.030 per million British thermal units in 2020. As a result, the EIA currently expects Hub prices will rise to an annual average of $3.010/mmbtu in 2021. In turn, this will limit natural gas use for power generation amid reduced natural gas production. Additionally, the EIA forecasts Henry Hub prices will rise to an average of $3.270/mmbtu in 2022. EIA estimates that 2020 dry natural gas production averaged 90.8 bcf/d, down -2.5% from 2019. The EIA expects U.S. dry natural gas production to average 88.2 bcf/d in 2021, down by -2.8% from 2020. Then, it will rise to 89.7 bcf/d in 2022.

 

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Disclosure: The risk of loss in trading futures and/or options is substantial. Past performance is not indicative of future results. The information in this message derived from third-party sources is believed to be accurate and reliable; Coquest does not guarantee the accuracy or completeness of the information. Opinions expressed in this material are subject to change without notice. This report should not be interpreted as a request to engage in any transaction of futures, options, and/or OTC derivatives. The information contained in this material is not to be relied upon in substitution for the exercise of your independent judgment. Seek independent financial, tax, legal, and accounting advice from your own professional advisers, based upon your particular circumstances.

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