Daily Energy Report
Crude Oil Futures for March 2020 settled up $00.37 @ $49.94/bbl trading in a $1.11 range including the overnight-RBOB settled down 0.71/cpg and Heating Oil settled up 1.42/cpg.
NYMEX traded crude oil futures started the week retesting last week’s sub $50.00/bbl low as it was reported over the weekend that OPEC and their working allies had backed away from an emergency meeting. According to sources, Russia also hesitated last week before signaling some support for additional cuts and still nothing has yet been confirmed or approved by any part of the group. OPEC and its allies had raised expectations of an emergency meeting-rumored to take place as early as this week- but now it appears like nothing will occur before the previously scheduled meeting in March.
Natural Gas Futures for March 2020 settled up $0.022 @ $1.788/mmbtu trading in a .047 cent range including the overnight session.
National Fuel Gas Company, an Amherst-based energy company’s first quarter profits fell by -16.0% and warned that its profits this year will be about -12.0% lower than it forecast in October. With natural gas prices expected to drop even further, National Fuel said it is further scaling back its gas drilling operations in Western and Central Pennsylvania and cutting spending on its drilling program by about $100 million from just a year ago while dropping to a single drilling rig beginning this summer-down from three rigs a year ago. Those decisions center largely around the continued decline in the price of natural gas from its Pennsylvania drilling territory and a lack of available pipeline capacity in the region.