Coquest Daily Energy Report

Crude Oil Futures for January 2022 settled up $0.93 @ $66.50/bbl trading in a $4.93 range including the overnight-RBOB settled up 1.66/cpg and Heating Oil settled up 2.63/cpg. OPEC and their working allies stuck to their prior plans to increase production for January but said they’re ready to act quickly if they need to backstop the market. Oil prices, which had fallen to as low as $62.43/bbl. (-$3.14) before the announcement, rose dramatically afterwards, as market participants seemed to believe that OPEC will step in if necessary. The cartel wasn’t moved to change its plans by the spread of the Omicron variant or the decision by the U.S. and other countries to release oil from their strategic reserves to force prices lower, that said, OPEC said it plans to “continue to monitor the market closely and make immediate adjustments if required” and could act between meetings, instead of waiting for next month’s get-together.


Natural Gas Futures for January 2022 settled down $0.202 @ $4.056/mmbtu trading in a .293 cent range including the overnight session. According to Energy Information Administration data, its estimated that domestic LNG exports averaged 9.8 billion cubic feet per day for the month of October, up +0.3 bcf/d from September totals, supported by large prices differentials between Henry Hub prices in the United States and spot prices in Europe and Asia. LNG exports resumed from Cove Point LNG in late October after that facility’s annual maintenance was completed. The EIA currently forecasts that LNG exports should average 9.8 bcf/d for all of 2021, up +50.0% from 2020. The EIA also expects that LNG exports will increase this winter, averaging upward of 11.0 bcf/d from November through March.


To send a question to the author, or to learn more about this topic, click here.

For assistance with brokerage or hedging services, please click here.


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.