Coquest Daily Energy Report

Crude Oil Futures for October 2022 settled down $5.37 @ $91.64/bbl. trading in a $7.12 range including the overnight-RBOB settled down 18.32/cpg and Heating Oil settled down 9.28/cpg. Global crude oil markets retreated in excess of $3.00/bbl. or -3.4% early during Tuesdays trade after it was reported that Iraq’s oil exports are currently unaffected by the current political turmoil in the country. According to sources, Baghdad is seeing its worst fighting for years as clashes between Shi’ite Muslim groups spill into a second day. Supporters of Shi’ite cleric Moqtada al-Sadr, a former anti-U.S. insurgent leader, have surrounded the Majnoon oil field in Basra since Monday evening as well as the 210,000 barrel per day Basrah refinery, according to the two sources, however, protesters are expected to leave these areas shortly after Sadr told his supporters to withdraw from violent clashes.

Natural Gas Futures for October 2022 settled down $0.294 @ $9.042/mmbtu trading in a 0.435 cent range including the overnight session. Although cooler weather will eventually emerge in the coming weeks for a majority of the lower forty-eight, a significant gain in the cooling degree days (CDD) forecast in one of the major weather models proved too much to ignore on the day of September 2022 futures expiration on Nymex. The Global Forecast System added a hefty 15 CDDs for the next 15 days, according to leading weather advisors. The model has also tended to run a little too hot in recent weeks, but the European models also added a few CDDs to secure the outlook.


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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.