Coquest Daily Energy Report

Crude Oil Futures for October 2022 settled down $0.47 @ $87.31/bbl. trading in a $4.25 range including the overnight-RBOB settled up 3.56/cpg and Heating Oil settled down 6.18/cpg. U.S. emergency crude oil stocks declined -8.4 million barrels last week to 434.1 million barrels, the lowest mark since October 1984, according to U.S. Department of Energy data. The release from the Strategic Petroleum Reserve in the week ended September 9th was the deepest draw since May. It comprised of about 6.3 million barrels of sweet crude and around 2 million barrels of sour crude. The Biden administration is weighing the need for further SPR releases after the current program ends in October, Energy Secretary Jennifer Granholm told reporters. A DOE spokesperson later said the White House-at that time-was not considering new releases beyond the 180 million barrels.

Natural Gas Futures for October 2022 settled up $0.035 @ $8.284/mmbtu trading in a 0.301 cent range including the overnight session. The West Virginia Public Service Commission (PSC) has ordered natural gas utilities in the state to come up with some alternative plans for the significant price increases the companies are proposing for winter rates for their customers. This year, because of the significant increase in natural gas prices, the utilities are seeking significant increases in rates. Mountaineer Gas, which has 195,000 customers, the largest natural gas utility in the state, is seeking +$4.180 more per Mcf in its purchase gas rate which would take the rate to $9.85 per Mcf. Hope Gas is requesting an increase of $5.890 more per Mcf this winter, taking its Mcf rate to $9.300.

 

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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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