Daily Energy Report

Crude Oil Futures for December 2020 settled down $0.27 @ $55.54/bbl trading in a $1.30 range including the overnight-RBOB settled up 1.29/cpg and Heating Oil settled down 0.55/cpg. According to Energy Information Administration data, during the first half of 2019, the United States exported an average of 5.47 million barrels per day of petroleum products, an increase of 19,000/bpd or +0.3% from the first half of 2018 and the slowest year-over-year growth rate for any half year in 13 years. Two factors that likely contributed to the lower exports were a decline in U.S. refinery runs during the first half of 2019 compared with the first half of 2018 and slowing global economic growthwhich is limiting demand for petroleum products. In the first half of 2019, increased exports of propane and distillate offset decreased exports of all other petroleum products.

Natural Gas Futures for November settled up $0.151 @ $2.597/mmbtu trading in a .091 cent range including the overnight session. Natural gas production has grown recently in China, largely because of increased development in low-permeability formations in the form of tight gas, shale gas, and to a lesser extent, coalbed methane. In 2018, China’s domestic natural gas production averaged 15.0 bcf/d. In June 2019, the Chinese government introduced a subsidy program that established new incentives for production of natural gas from tight formations and extended existing subsidies for production from shale and coalbed methane resources. This subsidy is scheduled to be in effect through 2023.

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