Coquest Daily Energy Report

Crude Oil Futures for November 2022 settled up $1.79 @ $78.50/bbl. trading in a $3.09 range including the overnight-RBOB settled up 10.89cpg and Heating Oil settled up 13.08/cpg. According to Energy Information Administration data, it is estimated that 99.4 million barrels per day of petroleum and liquid fuels was consumed globally in August 2022, an increase of +1.6 mil/bpd. from August 2021. The EIA currently forecasts that global consumption will rise by an average of +2.1 mil/bpd. for all of calendar 2022 and by an average of +2.0 mil/bpd. during 2023. As a result of high natural gas prices globally, the increase in our forecast for oil consumption in 4Q/22 and 1Q/23 as electricity providers, particularly in Europe, may switch to oil-based generating fuels.

Natural Gas Futures for October 2022 settled down $0.252 @ $6.651/mmbtu trading in a 0.503 cent range including the overnight session. Nord Stream 2 – the controversial gas pipeline from Russia – has begun leaking in the Baltic Sea, endangering naval traffic, Denmark has warned and set up a prohibitive zone within five nautical miles of the pipeline near the Bornholm Island. The Danish energy ministry said it had acted after being informed about a pressure drop in the now-defunct undersea pipeline earlier on Monday. In its statement, the Danish energy ministry said, “there are no security risks related to the leak outside of the prohibitive zone. “The incident is not expected to have consequences for the security of Danish gas supply.”


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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.