Daily Energy Report
Crude Oil Futures for April 2020 settled down $0.88 @ $45.90/bbl trading in a $1.90 range including the overnight-RBOB settled down 3.37/cpg and Heating Oil settled down 4.47/cpg.
The energy alliance between Saudi Arabia and Russia will come under intense scrutiny this week as delegates from some of the world’s most powerful oil producing nations discuss how best to cushion the impact of the Coronavirus outbreak. OPEC and nonOPEC producers will meet in Vienna, Austria today and tomorrow and are expected to agree on a deeper round of oil production cuts in an effort to stabilize price s, although the scale of the reduction remains far from certain. Some key members of the groupmost notably Saudi Arabia-are thought to be pushing for an output cut of up to 1 million barrels per day. That’s significantly higher than the cut of 600,000 bpd initially proposed by OPEC’s Joint Technical Committee. However, non-OPEC leader Russia has yet to sign off on this strategy.
Natural Gas Futures for April 2020 settled down $0.055 @ $1.772/mmbtu trading in a .082 cent range including the overnight session.
The Trump administration is moving to allow railroads to ship liquefied natural gas as part of a push to increase energy expo rts— a practice that has been banned until now because of the uncertain hazards it presents. A proposed Transportation Department rule allowing liquefied natural gas shipments and imposing no additional safety regulations has drawn widespread criticism fr om local elected officials, attorneys general from 15 states and the District of Columbia, firefighters’ organizations, unions that represent railroad employees, environmentalists, and the National Transportation Safety Board. Trump has set a deadline of May 10 to put the rule into effect, nearly eight months before results are expected from a Federal Railroad Administration study of the safety of the tank cars that would be used.