Coquest Daily Energy Report for April 09, 2024

Posted on 2024-04-09

Crude Oil futures for May settled down -$1.20 or -1.389% at $85.23. Oil prices experienced a second consecutive decline on Tuesday, amid ongoing ceasefire negotiations in Gaza. However, the decrease was modest, staying below one dollar per barrel, as efforts for peace faced challenges with Egyptian and Qatari mediators encountering obstacles in their quest to resolve the conflict. Talks held in Cairo, which included the participation of William Burns, the director of the U.S. Central Intelligence Agency, have yet to yield significant progress. Concurrently, Turkey initiated export limitations on Israel, prompting retaliatory actions from the Israeli side. In terms of supply dynamics, Mexico's Pemex announced additional reductions in crude exports to cater to domestic refineries, thereby tightening the global market. Anticipation loomed over U.S. crude inventories, with expectations of a 2.4 million barrel increase in the previous week.


Natural Gas futures for May settled up $.028 or 1.519% at $1.872. U.S. natural gas futures jumped on Tuesday, marking a one-month peak, driven by heightened volumes directed to the Freeport LNG export facility in Texas alongside a reduction in production. The flow rate to Freeport was anticipated to escalate to 1.3 bcfd on Tuesday, a notable increase from the preceding day's 0.9 bcfd. Freeport disclosed that Trains 1 and 2 would remain offline until May for maintenance purposes, while Train 3 remained operational. Conversely, flows to Venture Global LNG's Calcasieu Pass experienced a decline to 0.9 bcfd from 1.4 bcfd. The output of gas also witnessed a dip to 99.2 bcfd in April from 100.8 bcfd in March, attributed to pipeline maintenance and decreased drilling activities post the decline in prices.


View the full report here.