Daily Energy Report
Crude Oil Futures for May 2020 settled down $1.42 @ $20.09/bbl trading in a $1.66 range including the overnight-RBOB settled up 1.18/cpg and Heating Oil settled down 4.91/cpg.
With world demand now forecast to plunge in excess of 15 million or 20 mil/bpd, a -20% reduction from last year, analysts say massive output cuts will be needed beyond just the Organization of the Petroleum Exp orting Countries. According to leading industry advisors, the oil market supply chains are broken due to the unbelievably large losses in oil demand, for cing all available alternatives of supply chain adjustments to take place during April and May- including cutting refineries runs and increasing storage. An official from Saudi Arabia’s energy ministry said on Friday the Kingdom was not in talks with Russia to balance oil markets despite rising pressure from Washington.
Natural Gas Futures for May 2020 settled up $0.019 @ $1.690/mmbtu trading in a .082 cent range including the overnight session.
Before the current Coronavirus outbreak, analysts projected the United States would export much of its surplus gas to other c ountries. However, suppliers of liquefied natural gas around the globe are now flooding the market with excess cargoes due to extreme declining demand. Analysts currently expect buyers to cancel more U.S. cargoes in coming months as gas prices continue lower. Analysts polled, project domestic natural gas storage will reach a record 4.078 tcf at the end of the April through October injection season as the pandemic cuts demand before producers can reduce output.