Coquest Daily Energy Report

Crude Oil Futures for October 2022 settled up $0.62 @ $85.73/bbl. trading in a $4.12 range including the overnight-RBOB settled up 4.84/cpg and Heating Oil settled up 13.83/cpg. According to Energy Information Administration data, Brent crude spot price forecast averages $98.00 per barrel during the fourth quarter of 2022 and $97.00/bbl. in 2023. The possibility of petroleum supply disruptions and slower than expected crude oil production growth continues to create the potential for higher oil prices, while the possibility of slower than forecast economic growth creates the potential for lower prices. U.S. crude oil production in the current forecast averages 11.8 million barrels per day in 2022 and 12.6 mil/bpd. in 2023, which would set a record for the most U.S. crude oil production during a year. The current record is 12.3 mil/bpd. set in 2019.

Natural Gas Futures for October 2022 settled down $0.012 @ $7.752/mmbtu trading in a 0.519 cent range including the overnight session. According to the September Short Term Energy Outlook, for August, the Henry Hub spot price averaged $8.800 per million British thermal units, up from $7.280/mmbtu. in July. Natural gas prices rose in August because of continued strong demand for natural gas in the electric power sector, which has helped to kept natural gas inventories below their five-year (2017–2021) average. The Energy Information Administration currently forecasts that Henry Hub price to average about $9.000/mmbtu. in the fourth quarter of 2022 and then fall to an average of about $6.000/mmbtu. in 2023 as U.S. natural gas production rises.


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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.