Coquest Daily Energy Report for March 8, 2024

Posted on 2024-03-08

Crude Oil futures for April settled down -$.92, or -1.16%, at $78.01. Oil prices saw a decline on Friday, heading towards a weekly close in negative territory as concerns persisted over Chinese demand, even with OPEC extending supply cuts. Apprehensions about China's economic growth added to the complexities facing the oil market. Concurrently, the focus in oil markets shifted towards indications about the potential timing of interest rate cuts in the United States and European Union during the preceding two sessions. Lower interest rates could potentially stimulate oil demand by fostering economic growth. Additionally, TC Energy Corp. affirmed the integrity of the Keystone pipeline after a brief pause, assuring no crude oil leakage and easing immediate supply worries.


Natural Gas futures for April settled down -$.013 or -.71% at $1.818. Natural gas futures are declining this Friday. The decrease is linked to a significantly reduced storage withdrawal last week, primarily due to milder-than-usual weather conditions that have lessened the need for heating. Despite forecasts suggesting slightly cooler temperatures in the upcoming weeks, meteorologists predict that most of the Lower 48 U.S. states will continue to experience warmer-than-average conditions until at least March 18, potentially affecting heating demand. Additionally, the continuous outage at Freeport LNG's plant in Texas is contributing to a decrease in the volume of gas supplied to liquefied natural gas (LNG) export facilities. LNG flows have consequently diminished, with recovery not expected until Freeport LNG resumes full operation, potentially by mid-March.


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