Coquest

Coquest Daily Energy Report for March 18, 2024

Posted on 2024-03-18

Crude Oil futures for April settled up $1.68, or 2.07%, at $82.72. Oil prices climbed to reach a peak not seen in four months on Monday, fueled by diminished crude exports from Iraq and Saudi Arabia, alongside indications of heightened demand and economic expansion in both China and the United States. Iraq, the second-largest producer within OPEC, declared its intention to curtail crude exports to 3.3 million barrels per day (bpd) in forthcoming months, aiming to offset its OPEC quota surpassing since January. Meanwhile, Ukrainian assaults on Russian energy infrastructure has resulted in a 7% shutdown of refining capacity during the initial quarter. During January and February, China observed a 3% uptick in crude oil imports compared to a year ago, driven by refineries ramping up production to meet robust demand for transportation fuels during the Lunar New Year travel season.

 

Natural Gas futures for April settled up $.048 or 2.899% at $1.703. US natural gas futures experienced a notable surge on Monday, following a decline of approximately 8% in the preceding week, buoyed by positive movements in the energy market and forecasts indicating colder temperatures anticipated from March 19-26. Concurrently, ongoing repairs at the Freeport LNG terminal in Texas have resulted in diminished flows, expected to endure until April. Furthermore, CNX Resources has unveiled intentions to curtail well completions and gas production in reaction to subdued prices, thereby adding to a 6% reduction in US gas output observed over the past month. With Vladimir Putin being "elected" again as President of Russia, Europe is facing another six years of geopolitical pressure via gas supply and liquidity on global energy markets. 

 

View the full report here.

---