Coquest Daily Energy Report for March 26, 2024

Posted on 2024-03-26

Crude Oil futures for May settled down -$.33 or -.402% at $81.62. Oil prices saw a slight decline following Russia's directive to its companies to reduce output in the second quarter, aiming to achieve a target of 9 million barrels per day (bpd) to fulfill commitments to the OPEC alliance. Russia, a major player in global oil production and exports, faces challenges from recent attacks on its refineries by Ukraine and has retaliated with assaults on Ukrainian energy infrastructure. Market activity remained subdued as investors awaited crucial data indicating potential timing of interest rate adjustments by central banks, a factor influencing oil demand. The release of the February reading of the Personal Consumption Expenditures price index, a key measure of inflation favored by the U.S. Federal Reserve, is anticipated on Friday, coinciding with market closure. Additionally, a slight softening in the U.S. dollar provided some support to oil prices, as a weaker dollar typically renders oil more affordable for buyers holding other currencies.


Natural Gas futures for May settled down -$.001 or -.056% at $1.789. Natural gas prices in the United States have remained depressed due to subdued demand and an excess of domestic supply. The Freeport LNG export facility in Texas has declared that two out of its three liquefaction units will be offline until May, prolonging the period of diminished capacity. Consequently, the nation's capacity to export natural gas has been curtailed, resulting in a rise in domestic supply levels. In Berkeley, California, there has been an agreement to suspend the enforcement of a ban on natural gas piping in new residential and commercial constructions, which had been legally contested by the California Restaurant Association.


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