ENERGY FUTURESDAILY PREVIEW

Energy Table .Contract Sett Chg High Low ATR(14) SMA (100) SMA (200)Nymex Crude Oil May 0.00 0.00 0.00 0.00 0.00 0.00 0.00Natural Gas May 1.746 -0.069 1.839 1.702 0.150 1.946 2.126RB Gasoline May 66.12 1.76 67.31 60.56 10.81 140.12 157.40Heating Oil May 64.67 -8.78 72.80 63.50 9.65 151.85 168.49Brent Fin Last Day Jun 21.44 0.11 22.67 20.51 3.82 49.06 53.98US Dollar Index 0.00 0.000 0 0 0.000 0 0

Source: Bloomberg

Bloomberg Survey on U.S. Total Change in Inventories

Date Actual Survey Actual Survey Production Inventory10/4/2020 19248 12700 4914 7300 12300 5036183/4/2020 15177 9250 10497 5550 12400 484370

27/3/2020 13833 3300 7524 1200 13000 46919320/3/2020 1623 3000 -1537 -2000 13000 45536013/3/2020 1954 3700 -6180 -3811 13100 4537376/3/2020 7664 1700 -5049 -2879 13000 451783

28/2/2020 784 3000 -4339 -1871 13100 44411921/2/2020 452 2600 -2691 -2000 13000 44333514/2/2020 415 3100 -1971 200 13000 4428837/2/2020 7459 3200 -95 650 13000 442468

31/1/2020 3355 3000 -91 1800 12900 43500924/1/2020 3548 1290 1203 1581 13000 431654

Source: Bloomberg

Data Ahead :Economic Event Period Avg Survey Actual Prior

04/29/2020 22:30 DOE U.S. Crude Oil Inventories Apr-24 -- -- 15022K

04/29/2020 22:30 DOE Cushing OK Crude Inventory Apr-24 -- -- 4776K

04/29/2020 22:30 DOE U.S. Gasoline Inventories Apr-24 -- -- 1017K

04/29/2020 22:30 DOE U.S. Distillate Inventory Apr-24 -- -- 7876K

04/29/2020 22:30 DOE U.S. Refinery Utilization Apr-24 -- -- -1.50%

04/29/2020 22:30 DOE Crude Oil Implied Demand Apr-24 -- -- 14991

04/29/2020 22:30 DOE Gasoline Implied Demand Apr-24 -- -- 6095.4

04/29/2020 22:30 DOE Distillate Implied Demand Apr-24 -- -- 3987.9

04/30/2020 22:30 EIA Natural Gas Storage Change Apr-24 -- -- 43

5/2/2020 1:00 Baker Hughes U.S. Rig Count May-01 -- -- 465

5/2/2020 1:00 Baker Hughes U.S. Rotary Oil Rigs May-01 -- -- 378

5/2/2020 1:00 Baker Hughes U.S. Rotary Gas Rigs May-01 -- -- 85

U.S. Oil Rig Count vs Nymex Crude Oil & Gasoline Price

Total OPEC Crude Oil Production vs Nymex Crude Oil & Gasoline Price & Inventory

Source: Bloomberg

April 27, 2020

Gasoline Crude OilCrude Oil

KENANGA FUTURES SDN BHD Company No. 353603-X

Summary : Oil prices rose on Friday but still posted a weekly loss, the eighth in nine weeks, as global production cuts could not keep pace with the collapse in demand caused by the coronavirus pandemic.

Crude futures rebounded late in the day after U.S. rig count figures showed producers aggressively pulling back on drilling.

Brent futures rose 11 cents, or 0.5%, to settle at $21.44 a barrel, while U.S. WTI crude rose 44 cents, or 2.7%, to settle at $16.94. Oil marked the third straight week of losses, with Brent ending down 24% and U.S. West Texas Intermediate (WTI) off around 7%.

Oil trading has been extremely volatile. U.S. prices fell into negative territory on Monday for the first time ever and international benchmark Brent sank to two-decade lows. Investors have sold oil aggressively since early March as demand collapsed 30% due to the pandemic.

Global oil traders expect demand to fall short of supply for months due to the economic disruption caused by the pandemic. Producers may not be slashing output quickly or deeply enough to buoy prices.

After trading near unchanged for most of the day, the benchmarks rebounded in the afternoon after energy services firm Baker Hughes Co BKR.N said producers in April cut the number of active U.S. rigs by the most in a month since 2015. In Canada, drillers slashed the number of oil and natural gas rigs to a record low.

Storage is quickly filling worldwide, which could necessitate more production cuts, even after the Organization of the Petroleum Exporting Countries and allies including Russia agreed this month to cut output by 9.7 million bpd. The global economy may post a record contraction this year.

"Despite the measures taken by OPEC, oil producers in various countries should be aware that they may be called to take more drastic measures," Diamantino Azevedo, Angola's resources and petroleum minister, told state news agency ANGOP on Friday. Angola is a member of OPEC.

Russia plans to halve oil exports from its Baltic and Black Sea ports in May, according to the first loading schedule for crude shipments since it agreed to cut output.

Still, onshore oil storage is currently filled to nearly 85% capacity, according to energy research firm Kpler.

(Source: Reuters & Bloomberg)

Technical Analysis

Crude Oil:Oil prices rose on Friday, rebounding from the selloff earlier in the week. On the daily chart, the market trading in a new bearish territory following the new down leg formation earlier, with the next crucial resistance pegged around the 20.00 level. The 14-day relative strength index is pushing higher towards 35, crossing over from the oversold region, indicating that prices have started to neutralize. On the other hand, the daily moving average convergence/divergence (MACD) line is still below its signal line, affirming that the trend is still biased towards the downside. With a neutral to mildly bullish view, the commodity is expected to test the 20.00 psychological resistance level before establishing the next direction.

Nymex Crude Oil Historical Volatility Normalized RBOB Gasoline minus Nymex Crude Oil Price

10 Days 30 Days 60 Days 90 Days362.29 234.65 176.87 144.63

Nymex Crude Daily Chart Nymex RBOB Gasoline Daily Chart

Nymex Natural Gas Daily Chart Nymex Heating Oil Daily Chart

Nymex Brent Last Day Daily Chart WTI-Brent Spread

Source: Bloomberg

Kenanga Futures Sdn Bhd (353603-X) Dealing Desk: (603) 2172 3820 Fax: (603) 2172 2729 Email: futures@kenanga.com.myDisclaimer: This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the specific investment objectives, financial background and the particular needs of any person who may read this document. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement and assessment by addressees in relation to any investment decision. Kenanga Futures Sdn Bhd accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities/underlying securities. Kenanga Futures Sdn Bhd and its associates, their directors, and/or employees may have positions in, and may effect transactions in securities/underlying securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies.

0

50

100

150

200

250

300

350

400

1/21/2020 2/4/2020 2/18/2020 3/3/2020 3/17/2020 3/31/2020 4/14/2020

VOLATILITY_10D VOLATILITY_30D VOLATILITY_60D VOLATILITY_90D