Daily Energy Report
Crude Oil Futures for May 2020 settled down $1.89 @ $22.60/bbl trading in a $2.27 range including the overnight-RBOB settled down .30/cpg and Heating Oil settled down 4.75/cpg.
The oil patch as a whole has been hit hard by a simultaneous supply and demand shock in March as the Coronavirus pandemic cut s energy consumption and top producer Saudi Arabia raises production to full capacity in a bid to fight a price war with its rivals. International crude oil prices have lost about -45.0% this month and fallen below the cost of much of the world’s production. The collapse in demand and of energy diplomacy between Saudi Arabia, Russia and others have triggered unprecedented responses from governments and investors.
Natural Gas Futures for April 2020 settled down $0.022 @ $1.637/mmbtu trading in a .068 cent range including the overnight session.
Natural gas futures are now maintaining near their lowest levels in more than five years as it faces the prospect of a Corona virus related steep drop off in usage. The market was already on the defensive because of mild winter weather amid strong production. While the novel Coronavirus outbreak temporarily lifted natural gas prices on the notion of lower total vo lumes, the rally was short lived. The fuel initially gained on expectations of a decrease in the skyrocketing shale oil production that should also limit associated gas output, thereby slowing the ever increasing supply glut. Thursday morning ’s weekly EIA storage report showed a draw of -29 bcf for the week.