Coquest Daily Energy Report for April 01, 2024

Posted on 2024-04-01

Crude Oil futures for May settled up $.54 or .65% at $83.71. Oil prices ticked up on Monday, as U.S. futures reached a five-month peak, driven by expectations of economic expansion in the United States and China fueling demand. Additionally, tightening supplies due to OPEC output cuts and assaults on Russian refineries contributed to the upward pressure on prices. Manufacturing activity in China saw expansion in March for the first time in six months, a significant development considering China's status as the world's largest crude importer. On the supply front, Saudi Arabia, the leading oil exporter, might increase the official selling price for flagship Arab Light crude in May, following the strengthening of Middle East benchmarks last month. Russian Deputy Prime Minister Alexander Novak stated that the country's oil companies will prioritize reducing output over exports in the second quarter, aiming to evenly distribute production cuts among OPEC.


Natural Gas futures for May settled up $.074 or 4.2% at $1.837. Natural gas prices in the United States surged on Monday, attributed to a sustained decrease in output and revised forecasts indicating higher demand for the upcoming week compared to previous estimates. Gas production dipped to an average of 100.8 bcfd in March, a decline from February's 104.8 bcfd, as several energy companies, such as EQT and Chesapeake Energy, postponed well completions and reduced other drilling operations. Notably, the United States emerged as the largest exporter of liquefied natural gas (LNG) last year, with exports climbing by 12% from 2022 to an average of 11.9 billion cubic feet per day. Almost half of March's and last year's LNG exports were directed to Europe, which scaled back imports of Russian pipeline gas following Russia's incursion into Ukraine in 2022.


View the full report here.