Coquest Daily Energy Report for February 12, 2024

Posted on 2024-02-12

Crude Oil futures for March settled up $.08, or .10%, at $76.92. Concerns surrounding interest rates and global demand prompted a pause in the market today, following last week's 6% surge in prices. U.S. fuel supplies were tightened by several refiners remaining shut for maintenance. Gasoline futures had shot up nearly 9% in the prior week, although whether the trend would persist remained in doubt, given that U.S. fuel demand was also seen weakening in cold weather. Iraq, as a member of OPEC, affirmed its commitment to OPEC's decisions, including its second voluntary cut announced in December. Iraq also expressed its dedication to limiting production to no more than 4 million barrels per day.

Natural Gas futures for March settled down $.106 or -5.66% at $1.768. Amidst record production levels, ample inventories, and mild weather conditions, natural gas futures have plummeted to a three-year low. Producers are now faced with the daunting task of scaling back production in response to declining global gas prices and intensified competition from renewable energy sources. However, in a new report from BMI, analysts project that Asia’s natural gas consumption will grow at an annual average rate of 1.9 percent between 2023 and 2033, “with total gas consumption increasing from 921 billion cubic meters (bcm) in 2022 to 1,132 bcm in 2033”.


View the full report here.