Daily Energy Report
Crude Oil Futures for May 2020 settled down $2.26 @ $26.08/bbl trading in a $2.96 range including the overnight-RBOB settled up 1.00/cpg and Heating Oil settled down 2.49/cpg.
According to leading industry analysts, the current decrease in global demand and sharp increase in supply could result in mo re than 20 million barrels per day of displaced oil. That would put the oil market under extreme physical pressure. And while it is unlikely that nominal storage capacity will be breached, it is possible that the scale of the oversupply will overwhelm global logistics chains, thus continuing the onslaught of downward pricing. Brent crude futures could plunge to “single-digit lows” if major oil producers fail to reach a deal to cut output at a time when demand has collapsed due to the global Coronavirus pandemic.
Natural Gas Futures for May 2020 settled up $0.110 @ $1.731/mmbtu trading in a .119 cent range including the overnight session.
NYMEX traded natural gas futures on Friday increased in excess of +4.1% or $0.069/mmbtu-from a 24 year low in the prior session-and continued to show further signs of strength early and often as our Sunday evening trading session began with updated forecasts depicting cooler weather and higher heating demand for mid-April. However, futures prices are trading much higher for the balance of 2020 and calendar 2021 on expectations demand will return in coming months after governments loosen travel and work restrictions after slowing the spread of Coronavirus. Calendar 2021 has traded at a premium over 2022 for 17 days and over 2025 for seven.