Daily Energy Report

Crude oil futures for July 2021 settled up $0.02 @ $66.07/bbl, trading in a $1.10 range including the overnight. RBOB settled down 0.04/cpg and heating oil settled down 0.66/cpg.

According to Energy Information Administration weekly data, domestic crude oil refinery inputs averaged 15.1 million barrels per day during the week ending May 14, 2021, which was +96,000 barrels per day more than the previous week’s average, refineries operated at 86.3% of capacity last week. Gasoline production increased last week, averaging 9.8 million barrels per day, while distillate fuel production decreased last week, averaging 4.6 million barrels per day. U.S. crude oil imports averaged 6.4 million barrels per day last week, an increase of +0.9 million barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 6.0 million barrels per day or +10.9% more than the same four-week period last year.

Natural gas futures for June 2021 settled up $0.027 @ $2.913/mmbtu, trading in a .061-cent range including the overnight session.

For the month of April, the Natural Gas spot price at Henry Hub averaged $2.660 per million British thermal units, which is slightly higher than the March average of $2.620/mmbtu. The EIA currently expects that Henry Hub spot price will average $2.780/mmbtu in the second quarter of 2021 and will average $3.050/mmbtu for all of 2021, which is up from the 2020 average of $2.030/mmbtu. The EIA expects natural gas prices will rise this year as a result of two factors: growth in liquefied natural gas exports and rising domestic natural gas consumption in the residential, commercial, and industrial sectors. In 2022, it’s expected the Henry Hub price will fall to an average of $3.020/mmbtu amid slowing growth in LNG exports and rising production.

 

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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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