Daily Energy Report

Crude Oil Futures for November settled down $0.12 @ $52.63/bbl trading in a $1.46 range including the overnight-RBOB settled up 1.15/cpg and Heating Oil settled up 0.68/cpg. Despite the lack of meaningful upside in commodity markets, the price for tankers has been steadily moving higher. In an industry report from Nordic American Tankers with data from Clarksons Platou, day rates for very large crude carriers are up +55% in the past week, and current rates are +425% higher than last year’s. Suezmax is up +114% and +359% over the same respective time periods. However, the Trump administration is also putting sanctions on foreign suppliers to the industry. China’s Cosco, one of the world’s largest vessel owners, was hit with sanctions recently, and if companies with U.S. ties can’t use Cosco, it will put quick pressure on rates in the spot market.

Natural Gas Futures for November settled down $0.015 @ $2.288/mmbtu trading in a .057 cent range including the overnight session. Weekly estimates of natural gas storage capacity utilization show the US is at least 80% full in the three regions with the most working gas capacity—East, Midwest, and South Central non-salt, according to the latest Energy Information Administration Natural Gas Storage Dashboard. These three regions accounted for more than 70% of the total working natural gas capacity in the Lower 48 last year. Estimated net injections into underground natural gas storage facilities for the Lower 48 for the week ending September 27th were 112 bcf and topped 100 bcf for a second week in a row. This was the largest injection reported for a September week since at least 2010, when EIA started reporting for five regions.