Coquest

Coquest Daily Energy Report for March 12, 2024

Posted on 2024-03-12

Crude Oil futures for April settled down -$.37, or -.47%, at $77.56. Oil prices experienced a slight decline on Tuesday, ending slightly lower due to a higher-than-anticipated projection for U.S. crude oil production and less favorable economic data. However, persistent geopolitical tensions helped limit the extent of the decrease. OPEC maintained its prediction for relatively robust growth in global oil demand for 2024 and 2025 and revised its economic growth forecast upwards for the current year, suggesting room for further improvement. On the supply front, the EIA increased its 2024 estimate for domestic oil output growth by 260,000 barrels per day, compared to a previously expected rise of 170,000 bpd. Hopes for a ceasefire in the conflict between Israel and Hamas have dimmed, with negotiations stalled in Cairo and ongoing hostilities between Israel and Lebanon's Hezbollah.

 

Natural Gas futures for April settled down -$.045 or -2.56% at $1.714. Natural gas futures continued their downward trend today, following the release of the EIA's Short Term Energy Outlook. According to the report, natural gas spot prices at Henry Hub are expected to average $2.27 per million British thermal units in 2024, a decrease from the previous estimate of $2.65. If these projections materialize, it would mark the first output decline since 2020, when the COVID-19 pandemic significantly reduced demand for the fuel. Additionally, it would signify the first instance of demand growth for four consecutive years since 2016. Over the past month, US gas production has declined by 6%, with companies like EQT and Chesapeake Energy implementing planned production cuts.

 

View the full report here.

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