Coquest Daily Energy Report

Crude Oil Futures for September 2022 settled down $2.12 @ $88.54/bbl. trading in a $4.35 range including the overnight-RBOB settled down 11.87/cpg and Heating Oil settled down 7.76/cpg. OPEC and its allies, including Russia, decided Wednesday to approve an output increase of 100,000 barrels per day for September. The quota increase is equal to around 0.1% of global oil demand amid tight production capacity among OPEC+ members. In June, OPEC+ decided to increase output to 648,000 barrels per day for July and August, up from the previous quota of 432,000 bpd. However, many members have not been able to meet this production quota. Saudi Arabia, which leads OPEC, and the United Arab Emirates are the only countries that could meaningfully increase capacity but neither have shown a willingness to produce at maximum levels.

Natural Gas Futures for September 2022 settled down $0.144 @ $8.122/mmbtu trading in a 0.625 cent range including the overnight session. NYMEX traded natural gas futures surged after the Freeport export terminal in Texas reached an agreement with regulators to restart as soon as October. While Freeport had already indicated that it planned to resume operations in October, the news surprised traders who expected a more gradual restart after the Pipeline and Hazardous Materials Safety Administration demanded a series of corrective actions from Freeport. The Texas plant must provide weekly updates to the agency and file a root cause analysis report within 90 days, according to order.


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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.