Coquest Daily Energy Report

Crude Oil Futures for November 2022 settled down $1.78 @ $89.35/bbl. trading in a $3.26 range including the overnight-RBOB settled up 0.45/cpg and Heating Oil settled up 1.61/cpg. Global Crude Oil markets declined more than -3.1% early Tuesday morning, extending losses of nearly 2.0% during the previous session, as recession fears and a flare-up in COVID-19 cases in China again raised concerns regarding global demand. World Bank President David Malpass and International Monetary Fund Managing Director Kristalina Georgieva warned on Monday of a growing risk of global recession and said that inflation remains a continuing problem. “There’s a risk and real danger of a world recession next year,” Malpass said in a dialogue with Georgieva. The IMF chief last week said the global lender would downgrade its forecast for 2.9% global growth for calendar 2023 when it releases its World Economic Outlook on Tuesday.

Natural Gas Futures for November 2022 settled up $0.161 @ $6.595/mmbtu trading in a 0.309 cent range including the overnight session. European gas prices dropped to a three month low on Monday due to milder weather, European storage levels approaching capacity and high imports of liquefied natural gas by EU countries. Dutch front month futures dropped by as much as -8.0% to the lowest level seen since July. The dip in price comes after the European Commission said over the weekend that gas storage levels had surpassed 90%, which came alongside a forecasted period of milder weather. Analysts suggest the LNG market is “facing its most violent year yet” as countries scramble to replace the 40% of total gas in Europe, which has been lost since Russian began to curtail gas supply.


Receive the full Coquest Daily Energy Report by signing up today.

To send a question to the author, or to learn more about this topic, click here.

For assistance with brokerage or hedging services, please click here.


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.