Coquest Daily Energy Report for March 1, 2024

Posted on 2024-03-01

Crude Oil futures for April settled up $1.71, or 2.19%, at $79.97. Oil prices increased on Friday and were poised for weekly gains as the market anticipated OPEC's decision on supply agreements for the second quarter, alongside evaluating recent economic data from the U.S., Europe, and China. Sources suggest a decision on extending OPEC cuts is likely in the first week of March, with individual countries expected to make their announcements. On the demand side, a survey revealed that Chinese manufacturing activity shrank for the fifth consecutive month in February. Additionally, geopolitical tensions in the Red Sea contributed to Friday's price lift after the leader of Yemen's Houthis hinted at introducing military "surprises" in the region.


Natural Gas futures for April settled down $.025 or -1.33% at $1.860. US natural gas futures dipped at the beginning of March, attributed to surplus conditions stemming from a mild winter and heightened production levels. The month's lower export figures were influenced by a month-long shutdown at the Freeport LNG plant in Texas, coupled with a shorter month. Preliminary data from financial firm LSEG revealed a 7% decrease in US liquefied natural gas (LNG) exports for February compared to January. Despite this, the US maintained its status as the world's largest LNG exporter, surpassing Qatar and Australia, a position expected to persist in the current year. Last week saw US gas deliveries to LNG plants drop to 13.9 billion cubic feet per day (bcfd), with plant utilization around 95%, slightly lower than the end of January's 97%.


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