Coquest Daily Energy Report for April 11, 2024

Posted on 2024-04-11

Crude Oil futures for May settled down -$1.19 or -1.38% at $86.21. Oil prices closed lower on Thursday due to concerns about inflation affecting potential U.S. interest rate adjustments, alongside fears of potential Iranian actions against Israeli interests. Additionally, a power outage at Motiva Enterprise's Texas facility contributed to downward pressure on oil prices. Traders also expressed concerns about possible Iranian retaliation following an incident involving an Israeli embassy in Syria. U.S. Secretary of State Antony Blinken affirmed support for Israel amid these tensions. In separate developments, negotiations between Israel and Hamas regarding their ongoing conflict in Gaza have yet to reach a resolution. Minutes from the U.S. Federal Reserve showed officials worried that progress on inflation might have stalled and a longer period of tight monetary policy would be needed.


Natural Gas futures for May settled down -$.121 or -6.419% at $1.764. US futures for natural gas experienced a decline, following a brief surge to one-month peaks earlier in the week. This downturn can be attributed to projections indicating reduced demand and a larger-than-anticipated increase in US natural gas reserves. According to data from the EIA, reserves saw a 24 billion cubic feet expansion last week, nearly double what was predicted by the market. Furthermore, the conclusion of the winter heating season on March 31st revealed that working natural gas reserves stood at 2,290 billion cubic feet, marking a 39% increase compared to the previous five-year average. This surplus was primarily due to mild weather conditions, diminished natural gas usage, and heightened production levels, as outlined by the EIA. Additionally, expectations suggest that gas flow to the Freeport LNG export facility in Texas will plummet to near-zero levels following a malfunction in one of its three trains.


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