Coquest Daily Energy Report for February 7, 2024

Posted on 2024-02-07

Crude Oil futures for March settled up $.55, or .75%, at $73.86. Refinery usage in the United States experienced a 0.5% contraction, dropping to 82.4%. In the U.S. Gulf Coast, the severe cold spell resulted in a 15% reduction in refining capacity, causing utilization rates to reach their lowest point since September 2021, as per information from the EIA. Susan Collins, the President of the Federal Reserve Bank of Boston, indicated that if the economy aligns with her projections, there is a possibility that the central bank could consider reducing interest rates later this year. This potential development may offer support to futures in the crude market.

Natural Gas futures for March settles down $.042 or -2.09% at $1.967. Natural Gas falls lower and snaps back below $2 after research firm, Capstone LLC, released a report stating that the Liquified Natural Gas (LNG) export suspension imposed by the Biden administration is expected to persist for a duration of 9 to 12 months. This implies that the ban on LNG exports will continue even beyond the upcoming elections. The report emerges just hours before a specialized subcommittee convenes to discuss the matter on Capitol Hill. For Canada, the pause in approvals and what is sure to be an ensuing slowdown in United States natural gas exports offers its own export sector an invaluable window of time to catch up.


View the full report here.