Daily Energy Report

Crude oil futures for July 2021 settled down $1.11 @ $71.04/bbl, trading in a $2.53 range including the overnight. RBOB settled down 2.20/cpg and heating oil settled down 3.66/cpg.

The United States and Iran have been holding indirect talks in Vienna since early last month on possible ways for both countries to return to the so-called Iran nuclear deal. President Biden has signaled a willingness to return to the nuclear deal, but only if Iran returns to full compliance in its nuclear activities. Iran, for its part, has said it would start complying with the nuclear deal only after the U.S. lifts the sanctions on Tehran. According to leading shipping data, Iran may have as much as 69 million barrels of oil in floating storage waiting on tankers-and an additional 54 million barrels in storage-to travel to its buyers when the U.S. sanctions on its exports are removed.

Natural gas futures for July 2021 settled up $0.002 @ $3.253/mmbtu trading in a .077 cent range, including the overnight session.

China’s natural gas output has been growing steadily during the first four months of the year, data from the National Bureau of Statistics showed. According to the NSB, production rose +11.6% year-on-year to 70.2 billion cubic meters during the period. The figure is also up +23.1% compared to 2019, putting the average January-April growth at +10.9% for 2020 and 2021. In April alone, the nation’s production amounted to 16.9 billion cubic meters, up +7.0% from the previous year with average daily production reaching 560 million cubic meters. China’s natural gas imports in the first four months also surged by +22.4% year-on-year to 39.46 million tons, according to the NBS. Thursday morning’s weekly EIA storage report showed a build of +67 bcf for the week.

 

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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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