Daily Energy Report
Crude oil futures for May 2021 settled down $1.01 @ $60.55/bbl, trading in a $2.33 range including the overnight. RBOB settled down 0.62/cpg and heating oil settled down 2.06/cpg.
According to EIA data, the OPEC+ extension of existing supply cuts through April 2021 added significantly to near-term upward oil price pressures. Following the early March meeting, Brent crude oil spot price settled at $67.00/bbl on March 4, up +4.0%
from the previous day. The Energy Information Administration expects Brent prices will average between $65.00 and $70.00/bbl during March and April, more than $10.00/bbl above EIA’s expectations coming out of last month. The EIA continues to expect
downward crude oil price pressures to emerge in the coming months as the oil market becomes more balanced. Brent crude oil prices in the forecast average $58.00/bbl in the second half of 2021.
Natural gas futures for April 2021 settled down $0.030 @ $2.623/mmbtu, trading in a .091 cent range including the overnight session.
The U.S. ended October 2020 with more than 3.9 tcf in working natural gas storage according to EIA data, +5.0% more than the 2015–19 average and the fourth-highest end-of-October level on record. The EIA estimates that inventory withdrawals were -829
billion cubic feet in February, the largest February withdrawal on record. The February 2021 withdrawal was significantly larger than the five-year average February withdrawal of just -452 Bcf. In mid-February, the combination of strong natural gas demand
and lower production led to the second-largest weekly storage withdrawal on record, including a record weekly withdrawal of 156 bcf in the South Central region. The large February withdrawal has resulted in end-of-month storage levels falling lower than their