Coquest Daily Energy Report for April 18, 2024

Posted on 2024-04-18

Crude Oil futures for May settled up $.04 or .048% at $82.73. Oil prices had little change Thursday, as investors assessed robust U.S. employment figures and diplomatic measures against Venezuela and Iran, juxtaposed with global demand uncertainties and reduced tensions in the Middle East. On the supply front, Venezuela, an OPEC member, faced repercussions as it lost a crucial U.S. permit for oil exports worldwide, potentially impacting both the quantity and quality of its petroleum and fuel transactions. The U.S. also imposed sanctions on Iran, another OPEC constituent, focusing on the country's unmanned aerial vehicle production following a recent drone incident in Israel. However, these measures spared Iran's oil sector. Notably, Iran ranks as the third-largest oil producer within OPEC. In China, the largest importer of oil globally, senior central bank officials emphasized the possibility of further monetary measures to bolster the economy. However, there's a need to manage liquidity within the banking system as genuine credit demand shows signs of weakness.


Natural Gas futures for May settled up $.045 or 2.629% at $1.757. On Thursday, U.S. natural gas futures saw an uptick, rebounding from a dip in the previous session, following a storage build slightly below expectations. Last week, U.S. utilities injected 50 billion cubic feet (bcf) of gas into storage, contrary to the anticipated increase of 54 bcf. Nonetheless, gas reserves remain 36.4% above the seasonal average, attributed to higher initial storage levels and a mild winter. Additionally, gas production was forecasted to rise to 10.8 bcfd on Thursday, climbing from a recent low of 9.2 bcfd recorded on Tuesday. U.S. gas output has declined by 10% this year due to energy companies delaying well completions and drilling activities.


Read the full report here.