Coquest Daily Energy Report
Crude Oil Futures for September 2022 settled up $0.53 @ $94.42/bbl. trading in a $3.88 range including the overnight-RBOB settled up 5.86/cpg and Heating Oil settled down 5.96/cpg. The Organization of Petroleum Exporting Countries and their working allies-including Russia- will meet for the 43rd Meeting of the Joint Ministerial Monitoring Committee and the 31st OPEC and non-OPEC Ministerial Meeting Wednesday, August 3rd. to decide on September output. Two of eight OPEC+ sources in a survey said a modest increase for September will be discussed, while the rest said output would likely be held steady. According to leading market advisors, while President Biden’s visit to Saudi Arabia produced no immediate oil deliverables, it’s believed that the Kingdom will reciprocate by continuing to gradually increase output. The start of August sees OPEC+ having fully unwound record output cuts in place since the COVID-19 pandemic took hold in 2020.
Natural Gas Futures for September 2022 settled down $0.577 @ $7.706/mmbtu trading in a 0.588 cent range including the overnight session. According to Energy Information Administration data, since the end of last year, countries in Europe have increased imports of LNG to compensate for lower pipeline imports from Russia and to fill currently historically low natural gas storage inventories. LNG imports into the EU and UK increased by +63.0% during the first half of 2022 to average 14.8 bcf/d. Most U.S. LNG exports went to the EU and the UK during the first five months of this year, accounting for 64%, or 7.3 bcf/d, of the total U.S. LNG exports. Including Turkey, U.S. LNG exports to Europe accounted for 71% or 8.1 bcf/d of the total exports.
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