Daily Energy Report
Crude Oil Futures for April 2020 settled down $3.03 @ $28.70/bbl trading in a $5.65 range including the overnight-RBOB settled down 20.93/cpg and Heating Oil settled down 9.08/cpg.
The United Arab Emirates has followed Saudi Arabia’s lead in promising to raise crude oil output to record levels for April 2020, as the two producers from the Organization of Petroleum Exporting Countries raised the stakes in the current production standoff with Russia-that has decimated global crude oil prices and energy markets. The additional production the two Gulf allies plan to add is equivalent to 3.6 %of global supplies and will enter into the market at a time when global fuel demand for 2020 is forecast to contract for the first time in almost a decade due to the Coronavirus outbreak. An OPEC and non-OPEC technical meeting planned for Wednesday in Vienna has been called off.
Natural Gas Futures for April 2020 settled up $0.054 @ $1.815/mmbtu trading in a .076 cent range including the overnight session.
According to EIA data, domestic natural gas production grew by +9.8 billion cubic feet per day in 2019, a +10.0% increase year over year. The increase was slightly less than the 2018 annual increase of +10.5 bcf/d. U.S. natural gas production measured as gross withdrawals averaged 111.5 bcf/d in 2019, the highest volume on record, according to the Energy Information Administration’s Monthly Crude Oil and Natural Gas Production Report. U.S. natural gas production, when measured as marketed natural gas production and dry natural gas production, also reached new highs at 99.2 bcf/d and 92.2 bcf/d, respectively.