Daily Energy Report

Crude Oil Futures for May 2020 settled down $2.30 @ $20.11/bbl trading in a $3.13 range including the overnight-RBOB settled up 1.67/cpg and Heating Oil settled down 5.04/cpg.
Numerous domestic shale companies have detailed plans to reduce output along with oil majors. In late March, Chevron reduced its expectations for the Permian Basin output to 475,000/bpd by the end of the year, down from 600,000/bpd. Last week, Exxon said overall shale production would be about 150,000/bpd less than planned in 2021, as it had expected to produce roughly 360,000/bpd in 2020. U.S. Secretary of Energy Dan Brouillette said last week he expected U.S. production to decrease by roughly 2 million/bpd by the end of 2020. The department’s forecasts suggest the declines will take more time. The U.S. Energy Information Administration said in April that output should average roughly 11.1 million/bpd at the end of 2021.

Natural Gas Futures for May 2020 settled down $0.074 @ $1.650/mmbtu trading in a .099 cent range including the overnight session.
The privately owned Chinese company GCL Oil & Natural Gas Co Ltd has signed a framework agreement with Royal Dutch Shell to explore setting up a joint venture based in eastern China to market and trade liquefied natural gas. The proposed joint venture would secure LNG supplies from Shell and market the fuel to a receiving terminal which GCL is planning in Jiangsu province, GCL said in a statement. GCL is planning three receiving terminals along China’s east coast – Yantai in Shandong province, Rudong in Jiangsu and Maoming in Guangdong – with a total annual handling capacity of 14.5 million tonnes.