Coquest

Your Daily Energy Report for April 30, 2024

Posted on 2024-04-30

Crude Oil

Crude Oil futures for June settled down -$.70 or -.847% at $81.93. On Tuesday, oil prices experienced a decline, following suit from Monday's losses. This drop was attributed to the increase in U.S. crude production, reaching 13.15 million barrels per day (bpd) in February compared to 12.58 million bpd in January, marking the most significant monthly surge since October 2021. Simultaneously, exports saw a rise from 4.05 million bpd to 4.66 million bpd during the same period. Additionally, optimism regarding a potential ceasefire agreement between Israel and Hamas contributed to the downward pressure on oil prices. Recent efforts led by Egypt to revive stalled negotiations between the two parties have fueled expectations for a possible truce. Notably, ongoing attacks by Yemen's Houthis on maritime traffic in the vicinity of the Suez Canal, a crucial trading route, have helped stabilize oil prices, potentially leading to increased risk premiums in anticipation of disruptions in crude supply.
 

Natural Gas

Natural Gas futures for June settled down -$.039 or -1.921% at $1.921. U.S. natural gas futures saw a decline on Tuesday, unable to maintain the gains seen on Monday, which were driven by reports of increased LNG feedgas flows. In Texas, operators engaged in oil drilling are facing challenges in managing surplus natural gas due to oversupply and low prices, leading to a significant increase in requests for flaring. The Railroad Commission of Texas (RRC), responsible for regulating the state's oil and natural gas sector, approved 21 exemption requests from operators last week, predominantly in the Permian and Eagle Ford shale regions, allowing them to flare gas. This approval rate is more than four times higher than the corresponding period last year.

 

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