Coquest Daily Energy Report
Crude Oil Futures for September 2022 settled down $2.25 @ $92.09/bbl. trading in a $3.65 range including the overnight-RBOB settled down 2.55/cpg and Heating Oil settled up 3.38/cpg. The American Petroleum Institute’s weekly Crude Oil storage report released late Tuesday afternoon showed that domestic crude supplies increased by +2.1 million barrels for the week ended August 5th, 2022. The weekly API data also showed storage a decrease of -627 k/bbl. for Gasoline and a build of +1.4 mil/bbl. for Distillates. The Energy Information Administration’s weekly petroleum storage report released early Wednesday morning showed that domestic crude supplies increased by +5.5 million barrels for the week ended August 5th, 2022. The weekly EIA data also showed storage a decrease of -5.0 mil/bbl for Gasoline and build of +2.2 mil/bbl. for Distillates. Total commercial petroleum inventories increased last week by +13.0 million barrels last week.
Natural Gas Futures for September 2022 settled down $0.106 @ $8.874/mmbtu trading in a 0.403 cent range including the overnight session. U.S. gas exporter, Freeport LNG, has retracted the force majeure it initially declared after an explosion in June, a development that could cost its buyers billions of dollars in losses. The force majeure would also have allowed Freeport’s LNG buyers to exit their own agreements to deliver gas to end users. Instead, they are facing a collective loss of up to $8 billion as they source alternative supplies at elevated spot market prices. The buyers (including BP, Total, Japans JERA) had paid Freeport around $30-$50 million per LNG cargo, currently, those buyers would have to pay $100 million per cargo-based on Wednesday’s spot market prices-to replace the lost volumes.
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