Coquest

Coquest Daily Energy Report for February 20, 2024

Posted on 2024-02-20

Crude Oil futures for March settled down $1.61, or -2.02%, at $78.18. Oil prices declined on Tuesday as concerns about global demand outweighed the risk premium associated with the Israel-Hamas conflict. A preliminary Reuters poll suggested an increase in U.S. crude inventories last week, while distillates and gasoline stockpiles were expected to decrease. Ongoing attacks on shipping lanes in the Red Sea and Bab al-Mandab Strait by Iran-aligned Houthis, supporting Palestinians, have disrupted shipping. Despite the conflict in the Middle East, a major oil-producing region, investors seem more preoccupied with the decline in global demand.

 

Natural Gas futures for March settled down $.033 or -2.05% at $1.576. Natural gas futures lost the gains from Friday due to near-record production, abundant fuel storage, and above-average temperatures. Additionally, technical issues at Freeport LNG's export facility have limited gas flow to LNG export terminals, and record levels are not expected until the plant returns to full power. This winter's mild temperatures have enabled utilities to increase gas storage, with inventories currently 15.9% above normal levels. Moreover, meteorologists predict that the weather will continue to be milder than normal until March 1. Looking ahead, analysts expect producers to reduce output in 2024, following the sharp decline in prices.

 

The full report can be found here.

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