Coquest Daily Energy Report for March 19, 2024

Posted on 2024-03-19

Crude Oil futures for April settled up $.75, or .907%, at $83.47. Oil prices surged to multi-month peaks for the second consecutive session on Tuesday as market participants evaluated the impact of recent Ukrainian assaults on Russian refining facilities on global oil supplies. Ukraine has escalated its strikes on Russian oil infrastructure this year, targeting at least seven refineries with drones in the current month alone. These assaults have resulted in the closure of 7% of Russia's refining capacity, potentially leading to a decline in global petroleum reserves and a projected $3 hike in U.S. crude prices per barrel, as per analysts' assessments. The Commerce Department's report revealed a robust rebound in U.S. single-family homebuilding in February, a trend that could stimulate economic expansion and bolster oil demand.


Natural Gas futures for April settled up $.041 or 2.406% at $1.744. U.S. natural gas futures have climbed for a consecutive second day, spurred by forecasts predicting colder temperatures across significant swathes of the country. The anticipated resurgence in demand comes as freeze advisories blanket regions spanning all across the southern United States. Despite a larger-than-anticipated drawdown reported in the week concluding on March 8th, natural gas storage levels in the U.S. persist at 37% above the seasonal norm. Concurrently, maintenance activities at the Freeport LNG terminal are slated to persist until April, retaining a larger share of supply within the domestic market. Conversely, the EIA anticipates a marginal decline in natural gas production for the remainder of the year, amid subdued pricing conditions.


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