Coquest Daily Energy Report
Crude Oil Futures for August 2022 settled up $4.20 @ $102.73/bbl. trading in a $7.91 range including the overnight-RBOB settled up 18.38/cpg and Heating Oil settled up 26.33/cpg. The American Petroleum Institute’s weekly Crude Oil storage report released late Wednesday afternoon (to accommodate for Holiday) showed that domestic crude supplies increased by +3.8 million barrels for the week ended July 1, 2022. The weekly API data also showed storage decreases of -1.8 mil/bbl. for Gasoline and -635 k/bbl. for Distillates. The Energy Information Administration’s weekly petroleum storage report released early Thursday morning (to accommodate for Holiday) showed that domestic crude supplies increased by +8.2 million barrels for the week ended July 1, 2022. The weekly EIA data also showed storage decreases of -2.5 mil/bbl for Gasoline and -1.3 mil/bbl. for Distillates. Total commercial petroleum inventories increased last week by +5.1 million barrels last week.
Natural Gas Futures for August 2022 settled up $0.787 @ $6.297/mmbtu trading in a 0.893 cent range including the overnight session. Domestic consumption of natural gas in the Energy Information Administrations STEO forecast averages 85.3 bcf/d in 2022, up +3.0% from 2021. Rising U.S. natural gas consumption reflects increased consumption across all sectors. In the residential and commercial sectors, increasing consumption resulted from colder temperatures in 2022 than in 2021, and in the industrial sector, rising economic activity contributes to higher consumption. Limited natural gas-to-coal switching in the electric power sector-despite high natural gas prices-results in increased consumption of natural gas for power generation. For 2023, the EIA forecasts that natural gas consumption will average 85.1 bcf/d, about the same as 2022.
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