Daily Energy Report

Crude Oil Futures for March 2021 settled up $0.54 @ $56.23/bbl, trading in a $1.28 range including the overnight. RBOB settled down 0.38/cpg and heating oil settled up 1.00/cpg.

Responses to the 2019 novel COVID-19 pandemic caused global demand for petroleum products to fall significantly in 2020. The U.S. Energy Information Administration estimates that the world consumed 92.2 million barrels per day of petroleum and other liquid fuels in 2020, a decline of -9.0 mil/bpd or -9.0% from 2019. The large drop marks the first annual decline in global oil consumption since the recession of 2008–2009, and it ends a period of relatively stable growth. In the decade preceding 2020, oil consumption rose at an average annual rate of +1.5 mil/bpd. The largest annual increase in oil consumption during that period was +2.9 mil/bpd in 2010 and the smallest annual growth was +0.7 mil/bpd. in 2011.

Natural Gas Futures for March 2021 settled up $0.146 @ $2.935/mmbtu, trading in a .223 cent range including the overnight session.

The Energy Information Administration estimates that domestic natural gas consumption averaged 83.1 billion cubic feet per day in 2020, down -2.5% from 2019. The EIA currently expects that natural gas consumption will decline by -2.8% in 2021 and by an additional -2.1% in 2022. Most of the decline in natural gas consumption is the result of less demand from the power sector, which EIA forecasts to decline because of rising natural gas prices. These declines are somewhat offset by rising natural gas use in other sectors. Thursday morning’s weekly Energy Information Administration natural gas storage data showed a draw of -192 for the week.

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