Coquest Daily Energy Report
Crude Oil Futures for November 2022 settled down $0.15 @ $85.46/bbl. trading in a $2.51 range including the overnight-RBOB settled down 3.78/cpg and Heating Oil settled up 10.50/cpg. The Polish Government said last 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 down $0.454 @ $5.999/mmbtu trading in a 0.402 cent range including the overnight session. Gazprom CEO Alexei Miller on Sunday said plans to cap the price of Russian gas exports would cause supplies to be halted, echoing a similar threat from President Vladimir Putin. The conflict in Ukraine has prompted European Union customers to reduce their purchases of Russian energy while the G7 and the EU are trying to impose a price cap on Russian oil and gas. “Such a one-sided decision is of course a violation of existing contracts, which would lead to a termination of supplies,” Miller said in comments broadcast on state television. According to leading market advisors, cutting supplies from Russia would roil global energy markets, leaving the world economy facing even higher energy prices.
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