Coquest Daily Energy Report for April 03, 2024

Posted on 2024-04-03

Crude Oil futures for May settled up $.28 or .33% at $85.43. Oil prices reached their highest levels since late October on Wednesday due to concerns over potential disruptions in the global oil supply caused by escalating geopolitical tensions. However, prices retreated slightly after the U.S. Energy Information Administration reported a larger-than-expected increase in crude oil inventories. Iran, a significant oil producer and supporter of Hamas, which is engaged in conflict with Israel, has threatened retaliation against Israel for an attack that resulted in the death of senior military officials. Despite these developments, the U.S. Federal Reserve Chair, Jerome Powell, maintained a cautious stance on interest rate policy, emphasizing the need for further discussion and data analysis. Additionally, a meeting of key OPEC ministers concluded with no changes to oil output policy but emphasized the importance of adherence to production cuts by member countries.


Natural Gas futures for May settled down -$.021 or -1.13% at $1.841. Natural gas prices experienced a marginal decline in today's trading session as we observe a gradual recovery from exceptionally low levels. In March, gas production averaged 100.8 billion cubic feet per day (bcfd), a decrease from February's 104.8 bcfd, attributed to several energy companies, deferring well completions and scaling back drilling operations. Amidst the Ukraine conflict, Western European nations have been actively seeking to diminish their reliance on Russian energy sources. However, in the case of natural gas, they have increasingly substituted Russian pipeline supplies with liquefied natural gas (LNG). Recent data shows, EU ports received over 15.6 million metric tons (mt) of Russian LNG last year, representing a slight uptick from 2022 and a notable 37.7% surge compared to 2021.


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