Coquest Daily Energy Report for April 05, 2024

Posted on 2024-04-05

Crude Oil futures for May settled up $.32 or .37% at $86.91. On Friday, crude oil benchmarks experienced a rise as markets remained vigilant for any indications of direct conflict between Israel and Iran, which could further constrain supplies. Both Brent and WTI are poised to register gains of more than 4% for the week following Iran's pledge to retaliate against Israel for an attack that resulted in the death of senior Iranian military personnel. Furthermore, ongoing Ukrainian drone assaults on Russian refineries may have disrupted over 15% of Russia's refining capacity, according to a NATO official's statement on Thursday, impacting the country's fuel production. Despite these developments, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia under the umbrella of OPEC+, opted to maintain their existing oil supply policy this week while urging certain countries to enhance compliance with output reduction measures.


Natural Gas futures for May settled up $.011 or .62% at $1.785. Natural gas futures made a partial recovery from their recent declines on Friday as market participants deliberated over a variety of underlying factors, including constrained production, mild weather conditions, and abundant inventories. Nevertheless, the market remained under pressure due to adverse power and gas prices observed in specific regions such as Texas, California, and Arizona, alongside elevated gas storage levels. In the Northeast, more than 401,000 residences and commercial establishments remained without electricity following recent storms, resulting in diminished gas consumption. Furthermore, spot market rates in Texas, California, and Arizona were impacted by subdued demand, ample renewable energy resources, and ongoing maintenance of gas pipelines.


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