Coquest Daily Energy Report
Crude Oil Futures for November 2022 settled up $0.69 @ $88.45/bbl. trading in a $1.76 range including the overnight-RBOB settled up 1.29/cpg and Heating Oil settled up 17.80/cpg. The Polish Government said on Wednesday a leak in one of the Druzhba pipelines bringing crude oil from Russia to Europe curtailed supplies to Germany and was most likely caused by an accident, as Europe remains on high alert over its energy security. “Here we can talk about accidental damage,” Poland’s top official in charge of energy infrastructure Mateusz Berger told reporters when asked about the possibility of sabotage. “We are living in turbulent times, different connotations are possible, but at this stage we have no grounds at all to believe that”. Berger said the leak was located 70 km (44 miles) west from Plock, where Poland’s biggest refinery owned by PKN Orlen is located.
Natural Gas Futures for November 2022 settled up $0.042 @ $6.972/mmbtu trading in a 0.320 cent range including the overnight session. Germany and the Netherlands have proposed a package of 10 measures that the European Union could use to curb gas prices and avoid fuel rationing, including looking into setting a new benchmark price for liquefied natural gas. The plan for the most part calls for the EU to kickstart joint gas buying, to avoid one country outbidding another and driving prices higher. The two countries said they were open to the EU creating a new LNG benchmark and asked the European Commission to develop this while assessing whether such a price needed to remain voluntary. They said a broad gas price cap on imports was a less preferable option.
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