Coquest Daily Energy Report for February 6, 2024

Posted on 2024-02-06

Crude Oil futures for March settled up $1.03, or 1.43%, at $73.31. In the Energy Departments short-term energy outlook, U.S. Crude output is expected to grow by 170,000 bpd, much less than the previous forecasted rise of 290,000 bpd. Refiners are currently conducting maintenance on facilities nationwide, and a recent disruption at the BP refinery in Whiting, Indiana, is expected to lower production. Shifting focus to the Middle East, the United States is persisting in its efforts against the Iran-backed Houthis in Yemen and their assaults on maritime vessels are causing disruptions to worldwide oil trading routes.


Natural Gas futures for March settles down $.073 or -3.5% at $2.009. Americans set a new record for daily natural-gas consumption last month when freezing weather blew over much of the country. However, The next few EIA weekly storage reports are expected to show below-average withdrawals, reversing the recent decline in surpluses. In its short-term energy outlook, the EIA says it expects storage to end the November-March winter heating season at 1,910 Bcf, or 15% above the five-year average. Russian natural gas producer Novatek is scrambling to find customers for its newest liquified natural gas project, Artic LNG 2, after U.S. sanctions were imposed.


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