Daily Energy Report
Crude Oil Futures for March 2020 settled up $1.24 @ $53.29/bbl trading in a $1.56 range including the overnight-RBOB settled down 4.85/cpg and Heating Oil settled up 3.44/cpg.
Global benchmark Brent Crude Oil futures fell below $57.00 a barrel on Tuesday morning and West Texas Intermediate dipped below $51.00 a barrel pressured by concerns regarding the impact on oil demand stemming from the Coronavirus outbreak in China and the seemingly lack of further action by OPEC and its allies to support the market. Forecasters including the International Energy Agency have cut 2020 oil demand estimates because of the virus. The virus is having an even wider impact on companies and financial markets. Asian shares fell and Wall Street was poised to retreat on Tuesday after Apple said it would miss quarterly revenue guidance -owing to weakened demand in China.
Natural Gas Futures for March 2020 settled down $0.026 @ $1.955/mmbtu trading in a .033 cent range including the overnight session.
Preliminary expectations for this Thursday’s weekly Energy Information Administration Natural Gas storage report calls for a decrease of between -140 and -150 bcf for the week ended February 14th.That compares with a withdrawal of-115 bcf in the preceding week, a draw of -177 bcf a year earlier and a five year average withdrawal of -132.6 bcf. Updated weather forecasts show colder to well below colder temperatures to envelope the entire Western two -thirds of the lower forty-eight, while, from the western Great Lakes region to the Eastern seaboard and into Nava Scotia look for above to well above average temperatures for the time of year over the next six-to-ten day time frame.