Coquest Daily Energy Report

Crude Oil Futures for January 2022 settled up $2.56 @ $72.05/bbl trading in a $3.51 range including the overnight-RBOB settled up 5.67/cpg and Heating Oil settled up 5.34/cpg. Amid a heightened concern regarding the course of the pandemic after the emergence of the Omicron variant, Saudi Arabia injected a ray of confidence in markets by raising its official selling price for its flagship Arab Light to a nearly two-year high. Arab Light next month will sell for $0.60 more per barrel than it does this month for buyers across Asia, according to the data. That’s $3.30 per barrel more than the Oman/Dubai benchmark. The report added that this is the highest price for Arab Lights since early during 2020—the months before the pandemic struck. The price for Saudi crude sold to the United States is also going up by between $0.40 and $0.60 per barrel, depending on the grade.


Natural Gas Futures for January 2022 settled up $0.051 @ $3.708/mmbtu trading in a .172 cent range including the overnight session. According to market participants, ‘mild weather’ has been the main reason behind the massive declines of natural gas prices both on the home-front and for a majority of Europe. Expectations of milder weather in many parts of Europe this week, as well as stable pipeline gas supply from Russia and more LNG cargoes set to arrive in the region have dragged down key natural gas prices in recent days. Despite the sudden decline in Europe’s natural gas prices, the fundamentals for the winter remain bullish, analysts say. The lowest volumes of gas in storage in Europe in a decade have not changed and could come under pressure when and if the weather turns colder.


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