Written Commentary
Sluggish global demand outlook, increased OPEC output weighing on prices. Energies mostly lower.
CRUDE OIL
The energy markets have been on a bumpy ride this week, and while any improvement in global risk sentiment should help soothe concern with demand, the market still has to face the upcoming build-up in global supply. Demand remains a source spot for markets, as the IEA has lowered their 2020 consumption outlook by 140,000 barrels per day (bpd) to 91.9 million due to reduced air travel. OPEC’s monthly oil market report said global oil demand will fall to 90.6 million bpd, which is more than 9 million lower than last year’s level.
NATURAL GAS
Natural gas prices continue to see choppy price action, having fallen back from their early high this morning after a strong rebound from a 1-week low on Wednesday. The latest 6-10 and 8-14 day forecasts show a large portion of the eastern US having cooler than normal temperatures, which could lead to a reduction in air conditioning and power plant demand. US LNG exports have been on the rise since falling to a multi-year low last month.
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