Coquest Daily Energy Report for February 13, 2024

Posted on 2024-02-13

Crude Oil futures for March settled up $.95, or 1.23%, at $77.87. Tuesday saw a rise in oil prices, reaching a level close to a two-week peak, driven by ongoing tensions in the Middle East that contributed to the support of oil prices. Geopolitical concerns escalated as Israel conducted airstrikes in Gaza's Rafah city after the rejection of a ceasefire proposal by Israeli Prime Minister Benjamin Netanyahu. Meanwhile, OPEC affirmed its predictions for robust global oil demand growth in 2024 and 2025, and raised its economic growth forecasts for those years, citing additional optimistic factors. The report also highlighted a reduction in OPEC oil production by 350,000 bpd in January, following the implementation of a new output cuts by the OPEC+ alliance for the first quarter.

Natural Gas futures for March settled down $.079 or -4.47% at $1.689. Natural gas futures in the United States reached their lowest point since July 2020, attributed to a blend of increased production and decreased demand. Following the extreme cold spell in mid-January, gas wells have successfully resumed operations, pushing production nearly back to record levels. Moreover, technical challenges at Freeport LNG's export facility have impeded the flow of gas to the nation's LNG export facilities, with a return to record levels anticipated only upon full operational restoration of the plant.


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