Daily Energy Report
Crude oil futures for May 2021 settled up $0.48 @ $60.18/bbl, trading in a $0.95 range including the overnight. RBOB settled up 0.57/cpg and heating oil settled up 0.65/cpg.
During the last week of March, Abu Dhabi allowed trading of a futures contract linked to its flagship grade of crude for the first time in a debut that could test OPEC’s grip on oil prices. Prices for Murban futures rose +0.6% to $63.90 a barrel on Intercontinental Exchange Inc.’s new ICE Futures Abu Dhabi marketplace. Trading was brisk, with more than 6,300 contracts traded during the first session. Abu Dhabi plans to relinquish control over prices of Murban to investors and traders, a major step in efforts to fortify its position in the international oil market. The goal is to make Murban more attractive to refiners in Asia where oil producers are battling for customers.
Natural Gas Futures for May 2021 settled up $0.058 @ $2.619/mmbtu, trading in a .109 cent range including the overnight session.
Big oil has bet big on natural gas developments in the past decade, expecting continuing growth in demand for decades to come. Today, the majors continue to expect solid demand for natural gas, justifying investments in more production. The net-zero and energy transition narrative, however, has changed the overall narrative in the gas industry — buyers want net-zero cargoes, while producers and sellers pledge carbon capture and reduction of methane emissions.
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