Daily Energy Report

Crude Oil Futures for May 2020 settled up $5.01 @ $25.32/bbl trading in a $6.63 range including the overnight-RBOB settled up 11.63/cpg and Heating Oil settled up 6.28/cpg.
Both WTI and Brent futures surged overnight as China planned to start buying up cheap crude for its strategic reserves. Futur es rose as much as +13.0% in London and in excess of +11.0% on NYMEX as Beijing instructed government agencies to start filling state stockpiles after oil plunged -66.0% over the first three months of the year. China’s move comes as the physical crude market shows deepening signs of strain as supply explodes and demand collapses due to the Coronavirus. According to market advisors, news that China will take advantage of lower prices to add to reserves has clearly provided a boost to the market, however, given the extremely bearish outlook for the market it is difficult to believe that this strength is sustainable.

Natural Gas Futures for May 2020 settled down $0.035 @ $1.552/mmbtu trading in a .103 cent range including the overnight session.
BP plc on Wednesday said it has decreased its capital spending for 2020 by one-quarter, with the domestic exploration budget sliced in half as the company prepares to defend itself from the current global pandemic and extreme low energy prices. CEO Bernard Looney shared insight into the unfolding issues facing the global oil and gas industry and said the main objectives today are protecting employees, supporting the communities where they live and work and strengthening finances. Thursday morning’s weekly Energy Information Administration natural gas storage report showed a draw of -19 bcf for the week.

Back