Coquest Daily Energy Report for February 23, 2024

Posted on 2024-02-23

Crude Oil futures for April settled down $2.12, or -2.7%, at $76.49. Crude futures eased on Friday but were still set to end the week little changed as investors continued to assess various demand and supply factors. Earlier in the week, oil prices tumbled nearly 2% as a higher-for-longer interest rate scenario and demand-side uncertainties weighed on the market. Stronger-than-expected US inflation data bolstered bets that the Federal Reserve will have to keep borrowing costs at elevated levels, while the International Energy Agency said in its monthly report that global oil demand is losing steam due to shifts towards renewable energy. Meanwhile, the market recouped those losses towards the end of the week as supply concerns resurfaced amid rising geopolitical tensions in the Middle East.


Natural Gas futures for March settled down $.129 or -7.46% at $1.603. Natural gas futures continued to fall on Friday, driven by abundant supply, ample storage, and reduced heating demand amid a mild winter. Despite an Arctic freeze in January briefly impacting output, record levels have been maintained. Mild weather has left stockpiles well above normal, with the latest EIA data revealing storage 22.3% above the seasonal norm. Chesapeake Energy cut planned production for 2024 by roughly 30% after a plunge in prices to a 3-1/2 year low, joining Antero Resources, Comstock Resources, and EQT in scaling back drilling and production.


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