Coquest Daily Energy Report for February 14, 2024

Posted on 2024-02-14

Crude Oil futures for March settled down $1.23, or -1.58%, at $76.64. Wednesday saw an end to a series of consecutive crude gains after an EIA report showed a surge of over 12 million barrels of crude oil stocks last week, surpassing market expectations. However, there were notable reductions in U.S. gasoline and distillate fuel inventories, exceeding what analysts had anticipated. Concurrently, geopolitical tensions in the Middle East and the Russia-Ukraine conflict played a balancing role, countering worries about postponed U.S. interest rate cuts. On a positive note, the recent OPEC report projected an uptick in global oil demand extending into 2024 and 2025, deviating from more cautious predictions by other sources.

Natural Gas futures for March settled down $.08 or -4.73% at $1.609.  Natural gas prices reached a new 3-1/2 year low for the nearest futures, marking the seventh consecutive session of decline. The drop in natural gas prices over the last five weeks is attributed to above-normal winter temperatures in the U.S., which have dampened the demand for natural gas for heating and contributed to maintaining high inventories. The U.S. Climate Prediction Center indicates a likelihood exceeding 55% that the prevailing El Nino weather pattern will persist in the Northern Hemisphere until March. This forecast anticipates above-average temperatures, further impacting and influencing the downward trajectory of natural gas prices.


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