Coquest Daily Energy Report for February 9, 2024

Posted on 2024-02-09

Crude Oil futures for March settled up $.62, or .81%, at $76.84. Oil prices were on track for gains of 6% on a week-on-week basis amid persistent tensions in the Middle East after Israel rejected a ceasefire offer from Hamas, and tightness in refined products markets that was driven by refining outages. Meanwhile, the U.S. Treasury Department on Thursday sanctioned another three entities based in the United Arab Emirates and one tanker registered by Liberia for violating a cap placed on the price of Russian oil by a coalition of Western nations. Ukraine launched drone attacks against two oil refineries in southern Russia on Friday, resulting in a fire at the Ilsky refinery. The Afipsky refinery, which borders Crimea on the Black Sea and Azov Sea coast, was the other facility in the attack.

Natural Gas futures for March settled down $.07 or -3.65% at $1.874. U.S. natural gas futures fell further after near-term weather forecasts warm up, increasing market concerns about inventory surpluses growing over the next week or two with U.S. production back near record levels after January’s freeze-ins. Brazil’s nat gas imports fell to 6.5 billion cubic meters, or 228 billion cubic feet, according to ANP, as the country boosts its hydroelectric capabilities as well as solar and wind capacity. The number of active drilling rigs targeting natural gas in the US climbed by four this week, according to Baker Hughes.


View the full report here.