Coquest Daily Energy Report

Crude Oil Futures for September 2022 settled down $2.88 @ $86.53/bbl. trading in a $4.92 range including the overnight-RBOB settled down 5.10/cpg and Heating Oil settled up 3.99/cpg. Global Crude Oil prices were decidedly lower on Monday into Tuesday after disappointing Chinese economic data renewed concerns of a global recession that would be expected to reduce demand. The central bank in China-the world’s largest crude importer-cut lending rates to revive demand as data showed the economy slowing unexpectedly in July, with factory and retail activity squeezed by Beijing’s zero COVID policy. The country’s refinery output slipped to 12.53 million barrels per day-its lowest since March 2020-government data showed. ING bank cut its forecast for China’s 2022 GDP growth to 4%, down from a previous projection of 4.4%, and said a further downgrade was possible.

Natural Gas Futures for September 2022 settled up $0.601 @ $9.329/mmbtu trading in a 0.626 cent range including the overnight session. The Asia-Pacific gas market has suffered another blow after major natural gas producer Australia signaled it could potentially cut liquified natural gas exports as the region battles tight gas supplies, high prices and competition from gas hungry European buyers. Australia is looking to trim its overseas sales in favor of domestic consumption ahead of a projected shortfall in local supplies next year as energy protectionism takes hold globally. Last week, the Australian Competition and Consumer Commission called on Canberra to protect domestic gas supplies and curb LNG exports after projecting the east coast of the country could face a storage shortfall of 56 petajoules of gas next year.

 

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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.

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