Coquest Daily Energy Report

Crude Oil Futures for August 2022 settled down $0.97 @ $98.53/bbl. trading in a $7.05 range including the overnight-RBOB settled down 9.24/cpg and Heating Oil settled down 19.10/cpg. According to Energy Information Administration data, the domestic average retail price for regular grade gasoline averaged $4.44 per gallon for May and the average retail diesel price was $5.57/gal. Rising prices for gasoline and diesel reflect refining margins for those products that are at or near record highs amid low inventory levels. The EIA expects the gasoline wholesale margins to fall from $1.17/gal in May to average 0.81 cents/gal in Q3-22, the EIA currently expects retail gasoline prices to average $4.27/gal in Q3-22. Diesel wholesale margins in the forecast fall from $1.53/gal in May to $1.07/gal in Q3-22, and retail diesel averages $4.78/gal in Q3-22.

Natural Gas Futures for July 2022 settled down $0.013 @ $5.510/mmbtu trading in a 0.357 cent range including the overnight session. Preliminary expectations for this Thursday’s mornings weekly Energy Information Administration Natural Gas storage report calls for an addition of between +70 and +80 billion cubic feet for the week ended July 1, 2022. That compares with an increase of +82.0 bcf in the preceding week, a build of +16.0 bcf. a year earlier and a five-year average injection of +60.2 bcf. Updated weather forecasts show a continuation of above normal temperatures for the heart of the lower forty-eight, while the West Coast and inner Mountain West regions also begin to heat up. Look for mostly normal temps to prevail throughout the Ohio Valley and New England regions over the next six-to-ten day time frame.


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Disclosure: The risk of loss in trading futures and/or options is substantial. Past performance is not indicative of future results. The information in this message derived from third-party sources is believed to be accurate and reliable; Coquest does not guarantee the accuracy or completeness of the information. Opinions expressed in this material are subject to change without notice. This report should not be interpreted as a request to engage in any transaction of futures, options, and/or OTC derivatives. The information contained in this material is not to be relied upon in substitution for the exercise of your independent judgment. Seek independent financial, tax, legal, and accounting advice from your own professional advisers, based upon your particular circumstances.