Coquest Daily Energy Report for March 13, 2024

Posted on 2024-03-13

Crude Oil futures for April settled up $2.16, or 2.78%, at $79.72. Oil prices reached a peak not seen in four months on Wednesday. This increase was attributed to unexpected decreases in U.S. crude inventories, coupled with a larger-than-anticipated decline in U.S. gasoline stocks.  According to the EIA report, crude oil inventories in the U.S. experienced a notable drop of 1.536 million barrels last week, contrary to forecasts of a 1.338 million-barrel increase. This marked the first decline in seven weeks, aligning with industry data reported earlier by API. In Russia, Ukraine targeted oil refineries for the second consecutive day with heavy drone strikes, resulting in a fire at Rosneft's largest refinery. Russian President Vladimir Putin characterized these attacks as attempts to interfere with the upcoming presidential election in his country.


Natural Gas futures for April settled down -$.056 or -3.38% at $1.658. U.S. futures for natural gas continue their downward trend, marking the sixth consecutive session of losses. Market sentiment leans towards expecting additional rises in surplus stockpiles. The decrease in flows towards LNG terminals, attributed to maintenance activities, contributes to the overall bearish outlook, alongside subdued demand driven by weather conditions. The financial firm LSEG reports that gas output in the Lower 48 U.S. states has decreased, with a notable drop in daily production to a seven-week low. Despite new announcements of production cuts this week, they offered minimal relief as they were relatively minor. The market's prevailing strength on the supply side remains a dominant factor.


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