Coquest

Coquest Daily Energy Report for March 21, 2024

Posted on 2024-03-21

Crude Oil futures for April remained unchanged, at $81.68. Oil prices experienced a slight decline on Thursday, influenced by reports indicating weaker U.S. gasoline demand and the emergence of a United Nations preliminary resolution advocating for a ceasefire in Gaza. The U.S. Energy Information Administration (EIA) reported an unexpected decrease in crude inventories in the United States, the world's largest oil consumer, during the previous week. Despite a seventh consecutive week of gasoline inventory reductions, gasoline product supplied, a measure of demand, fell below 9 million barrels. Additionally, confirmation of a U.S.-drafted U.N. resolution aimed at securing a ceasefire added further pressure on oil prices.

 

Natural Gas futures for April settled down -$.016 or -.942% at $1.683. U.S. natural gas futures experienced a decline in  following the EIA's announcement of a 7 Bcf injection in underground storage for the previous week, leading to a surplus of inventories reaching 41% above the 5-year average. Despite forecasts indicating colder late-winter conditions in the northern U.S., the market reaction to the storage build was likely tempered. According to a note from NatGasWeather.com, weather patterns are anticipated to remain close to seasonal norms over the next 15 days, resulting in demand levels ranging from near to slightly stronger than usual. In Houston on Monday, U.S. Secretary of Energy Jennifer Granholm aimed to reassure skeptical oil and gas industry leaders regarding a temporary halt on liquefied natural gas exports from new projects, emphasizing that this pause would be brief and would not impede the industry's growth.

 

View the full report here.

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