Coquest Daily Energy Report

Crude Oil Futures for September 2022 settled up $1.75 @ $90.76/bbl. trading in a $3.67 range including the overnight-RBOB settled up 3.06/cpg and Heating Oil settled down 3.68/cpg. Market advisors are quick to point out that Russia’s share of the Indian oil market is growing at the expense of Saudi Arabia, noting that Russian oil has been selling at a sizeable discount to Saudi crude. Russia has now become the second biggest oil supplier to India in June after Iraq-which remained the biggest oil supplier to the subcontinent. India and China have become key markets for Russian oil after the Ukraine invasion as Europe began to wind down its purchases. The EU plans to suspend almost all imports of Russian crude and fuels by the end of the year when an embargo will come into effect.

Natural Gas Futures for September 2022 settled down $0.475 @ $7.589/mmbtu trading in a 0.385 cent range including the overnight session. According to Energy Information Administration data, natural gas pipeline exports from the West Texas region to Mexico averaged 1.6 billion cubic feet per day in May 2022-the highest level of pipeline exports from West Texas on record-according to the most recent monthly EIA data. Compared with the 2021 annual average, U.S. pipeline exports from West Texas increased by +12.0% from January through May 2022 and averaged 1.4 bcf/d over this five-month period. U.S. natural gas pipeline exports from West Texas to the Northwestern, Central, and Southwestern regions of Mexico have also been growing in recent years, from 0.6 bcf/d in 2019 to 1.2 bcf/d in 2021, and to 1.4 bcf/d on average from January through May 2022.


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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.