Coquest Daily Energy Report for April 12, 2024

Posted on 2024-04-12

Crude Oil futures for May settled up $.64 or .753% at $85.66. Oil prices experienced a slight uptick on Friday due to tensions in the Middle East but ended the week with a decline, primarily influenced by a pessimistic outlook on global oil demand growth from the International Energy Agency (IEA) and concerns over the pace of interest rate reductions in the U.S. Throughout the week, there was apprehension regarding potential retaliation from Iran, the third-largest OPEC producer, following a suspected attack on Iran's embassy in Damascus. Despite expectations of a possible Iranian response against Israel, it's believed such action wouldn't escalate into a larger conflict involving the U.S., as indicated by a U.S. official. Iran, reportedly, intends to deliver a measured response to prevent a significant escalation of tensions. The threat of disruptions to the supply chain remains a significant concern, particularly with Iran's continued threat to block the Suez Canal.


Natural Gas futures for May settled up $.006 or .34% at $1.77. U.S. natural gas futures experienced a minor uptick today after a decrease the day prior, which was prompted by a notable increase in storage levels reported by the U.S. Energy Information Administration (EIA). The EIA disclosed a storage build of 24 billion cubic feet (bcf) for the week ending April 5, surpassing the anticipated 8-bcf rise and falling in line with the five-year average. This announcement led to a significant price decline, with May delivery futures settling at $1.798 per mmBtu. Looking ahead, the weather forecast indicates mild temperatures throughout the U.S. for the upcoming week, with subdued demand anticipated to persist. NatGasWeather highlighted cooler trends for April 19-23, which could provide a slight lift to prices, although the overall demand outlook remains subdued.


View the full report here.