Coquest Daily Energy Report

Crude Oil Futures for November 2022 settled up $2.89 @ $86.52/bbl. trading in a $3.76 range including the overnight-RBOB settled up 17.01/cpg and Heating Oil settled up 16.67/cpg. The Organization of the Petroleum Exporting Countries and its working allies is considering an output cut of more than 1 million barrels per day ahead of Wednesday’s unscheduled meeting, OPEC+ sources have told reporters, however, that figure does not include additional voluntary cuts by individual members, one OPEC source added. If agreed upon, it will be the group’s second consecutive monthly cut after reducing output by 100,000/bpd. last month. According to market advisors, If OPEC+ does decide to cut output in the near term, the result is an increase in overall spare capacity, which in turn, will likely put more downward pressure on long-dated contracts.

Natural Gas Futures for November 2022 settled up $0.367 @ $6.837/mmbtu trading in a 0.575 cent range including the overnight session. According to leading sources, Europe has managed to fill its gas stores ahead of their proposed schedule. Europe’s natural gas prices have declined dramatically on reports that Germany’s current gas stockpiles are actually running ahead of schedule. Benchmark Dutch front-month futures declined -21.0% in a single day, reversing the previous week’s +40.0% increase after Germany’s Economy Minister Robert Habeck revealed that the country’s gas stores are filling up fast and are on target to meet the October objective of 85.0% of capacity.


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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.