Coquest Daily Energy Report for April 23, 2024

Posted on 2024-04-23

Crude Oil futures for Maysettled up $1.36 or 1.661% at $83.26. On Tuesday, oil prices surged by a dollar per barrel, propelled by the decline of the U.S. dollar index to its lowest point in over a week, and a shift in investor attention from Middle East geopolitical tensions to global economic conditions. The U.S. dollar index weakened following S&P Global data indicating a slowdown in U.S. business activity in April, reaching a four-month low due to weakened demand. A devalued dollar typically stimulates demand for dollar-denominated oil among investors holding alternative currencies. Investors are eagerly awaiting the release later this week of U.S. first-quarter gross domestic product data and March figures for personal consumption expenditures, which serve as the Federal Reserve's preferred inflation measure. According to a preliminary Reuters poll of analysts, U.S. crude oil inventories are projected to have increased last week, while stocks of refined products are anticipated to have declined.


Natural Gas futures for May settled up$.029 or 1.404% at $2.094. On Tuesday, U.S. natural gas futures concluded with an upward trend, suggesting a possibility of market steadiness. Yet, sustained buyer activity is crucial to surpass the declining 50-day moving average, which has guided market trends since early November. This adaptation reflects shifts in demand influenced by weather patterns and operational modifications. Initially, natural gas prices ascended due to the resumption of Freeport LNG operations and heightened demand stemming from cooler weather conditions. Nevertheless, these gains were short-lived as the market retreated on projections of milder weather ahead. Notably, upcoming weather systems are anticipated to bring cooler temperatures to the Great Lakes and Northeast regions, potentially leading to a temporary surge in demand.


Read the full report here.