Coquest Daily Energy Report for April 04, 2024

Posted on 2024-04-04

Crude Oil futures for May settled up $1.16 or 1.36% at $86.59. Oil prices continued their upward trajectory on Thursday, driven by geopolitical tensions and production cuts, which outweighed concerns regarding potential U.S. Federal Reserve interest rate adjustments. The recent surge in oil prices has been fueled by Ukrainian strikes on Russian refineries, disrupting fuel supply chains, along with reports that Mexico's state-owned energy firm Pemex instructed its trading arm to halt up to 436,000 barrels per day of crude exports this month, as it readies to refine domestic oil at the new Dos Bocas refinery. Additionally, the Labor Department reported a higher-than-anticipated increase in U.S. unemployment claims for the previous week, signaling a gradual easing of labor market conditions. Investors are closely monitoring economic indicators and central bank policies for insights into the future trajectory of oil demand.


Natural Gas futures for May settled down -$.067 or -3.64% at $1.774. Natural gas futures in the US experienced a significant decline on Thursday following the release of the EIA's storage draw report. According to government data, US utilities extracted 37 billion cubic feet of natural gas from storage last week, slightly below the anticipated 38 bcf withdrawal. Additionally, the report indicated that natural gas inventories are currently 38.9% higher than the seasonal average. Prices faced additional downward pressure due to milder weather conditions and a more moderate decrease in output. Revised estimates for April indicate a decline in output from 4.1 bcfd to 2.3 bcfd between Tuesday and Thursday. Looking ahead, meteorologists forecast cooler temperatures until April 7, followed by a warmer pattern from April 8-19.


View the full report here.