Daily Energy Report

Crude Oil Futures for April 2020 settled down $1.48 @ $31.50/bbl trading in a $3.61 range including the overnight-RBOB settled down 21.28/cpg and Heating Oil settled down 7.82/cpg.
On Tuesday, the Department of Energy said that it was suspending an upcoming sale from the Strategic Petroleum Reserves. “The sale was designed to raise revenue for SPR facility maintenance and upgrades. Given current oil markets, this is not the optimal time for the sale. The Department continually monitors and evaluates global oil markets and will provide updated information as market conditions change,” DOE Spokeswoman Jess Szymanski said. The SPR has an authorized storage capacity of 713.5 million barrels, so it still has the room to hold another 78 million barrels before it is full. According to sources, apart from the SPR, the Trump Administration is also considering other relief measures for domestic oil producers, including tax relief.

Natural Gas Futures for April 2020 settled down $0.037 @ $1.841/mmbtu trading in a .133 cent range including the overnight session.
According to Energy Information Administration data, for February, the Henry Hub natural gas spot price averaged $1.910/mmbtu. Warmer than average temperatures in February reduced demand for heating and put downward pressure on prices. The EIA forecasts that prices will begin to recover somewhat in the second quarter of 2020 as domestic natural gas production declines and natural gas use for power generation increases the overall demand. The EIA expects prices to average $2.220/mmbtu in the third quarter of 2020. Thursday’s weekly natural gas storage data, show a draw of -48 bcf for the week.