Daily Energy Report

Crude Oil Futures for February 2020 settled down $0.05 @ $59.56/bbl trading in a $1.65 range including the overnight-RBOB settled up 0.39/cpg and Heating Oil settled down 0.81/cpg. Although it seems unlikely, according to market advisors, a significant disruption to oil supplies scheduled to travel through the Strait of Hormuz could well be the beginning of trip le digit oil prices. On Wednesday, the Wall Street Journal, citing sources, reported that Saudi Arabia’s state tanker operator, Bahri, had suspended transits through the Strait of Hormuz, also, British warships have reportedly been seen stationed in and around the Gulf in order to support British flagged oil tankers through the Strait if need be. Most market participants believe, any attempt by Iran to prevent vessels from passing through the Strait represents a red line for Washington.

Natural Gas Futures for February 2020 settled up $0.025 @ $2.166/mmbtu trading in a .065 cent range including the overnight session. According to recently released EIA data, the estimated natural gas consumption for the month of October was 2,327 bcf, or 75.1 bcf/d. This level was +1.5 bcf/d or +2.1% higher than the 73.5 Bcf/d consumed in October 2018. Natural gas consumption for October was the highest level for the month since 2001 when Energy Information Administration began using the current definitions for consuming sectors. Thursday morning’s weekly EIA Natural Gas storage report showed a withdrawal of -58 bcf for the week ended January 3rd, 2020.