Coquest

Coquest Daily Energy Report for April 16, 2024

Posted on 2024-04-16

Crude Oil futures for May settled down -$.05 or -.059% at $85.36. Oil prices experienced a slight decline on Tuesday, as economic challenges countered the support from the United States' announcement of forthcoming sanctions against Iran following the country's recent attack on Israel. U.S. Treasury Secretary Janet Yellen stated that the U.S. plans to impose new sanctions on Iran soon in response to its unprecedented assault on Israel, with the aim of diminishing Iran's oil export capacity. Iran, a significant producer within the Organization of the Petroleum Exporting Countries, currently produces over 3 million barrels of crude oil per day. Federal Reserve Vice Chair Philip Jefferson affirmed that the U.S. central bank is prepared to maintain its tight monetary policy if inflation does not decrease as anticipated. Additionally, a recent Reuters poll indicated an expected increase in U.S. crude stockpiles for the previous week, while gasoline and distillate inventories were anticipated to decline.

 

Natural Gas futures for May settled up $.041 or 2.425% at $1.691. U.S. natural gas futures stage a late-session rebound after prices struggling to find momentum after a steep drop on Monday.Despite lower projected production for 2024, the market continues to grapple with ample inventories and subdued demand. Natural gas output in the Lower 48 U.S. states dipped from 100.8 billion cubic feet per day (bcfd) in March to 97.6 bcfd in April. This decline coincided with an unexpected uptick in gas storage levels, as indicated by the EIA. Utilities injected 24 billion cubic feet of gas into storage last week, surpassing most industry predictions. NatGasWeather anticipates a brief surge in demand due to colder weather forecasted from Friday to Monday across the northern, central, and eastern U.S. However, the outlook suggests a return to above-average temperatures.

 

Read the full report here.

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