Daily Energy Report
Crude Oil Futures for April 2020 settled down $10.15 @ $31.13/bbl trading in a $7.54 range including the overnight-RBOB settled down 25.21/cpg and Heating Oil settled down 22.23/cpg.
Both NYMEX WTI and ICE Brent futures prices plunged at the onset of Sunday night trading after OPEC’s failure to strike a deal with its allies regarding production cuts caused Saudi Arabia to slash its prices as it reportedlygets set to ramp up production. The meeting also concluded with no directive about the production cuts that are currently in place but set to expire at the e nd of the month. WTI futures were down more than -22.0% at $32.00 per barrel as of 5:50 a.m. CT Monday, having earlier crashed to a low of $27.34 per barrel. International benchmark Brent crude futures were down nearly -20.0% to $36.30 per barrel. Brent futures were down more than -30.0% at their lows @ $31.02/bbl.
Natural Gas Futures for April 2020 settled up $0.070 @ $1.778/mmbtu trading in a .207 cent range including the overnight session.
Several natural gas pipeline upgrades are either planned or currently under construction in New England, which will increase deliverability into the region over the next several years. According to the U.S. Energy Information Administration’s tracking of natural gas pipeline projects, four pipelines are expected to increase compression within their system by 2023, adding more than 350 million cubic feet per day of natural gas pipeline capacity into the region. As of the end of 2019, the EIA estimates pipeline capacity into New England from both Canada and New York was 5,200 mmcf/d.