Coquest Daily Energy Report
Crude Oil Futures for December 2022 settled down $2.88 @ $88.91/bbl. trading in a $3.51 range including the overnight-RBOB settled down 1.64/cpg and Heating Oil settled down 1.04/cpg. Prior to the OPEC+ announcement and the speculation of cuts in the days immediately preceding the announcement, crude oil prices were generally decreasing due to increasing concerns around weakening global economic conditions. In addition, the 180 million barrel Strategic Petroleum Reserve release conducted in recent months may also have relieved some supply concerns. The front-month futures price for Brent crude oil averaged -$7.00/bbl. lower in September than in August. September marked the third consecutive month in which the Brent crude oil futures price decreased, bringing the total decrease to -$27.00/bbl. in those three months.
Natural Gas Futures for December 2022 settled down $0.806 @ $6.138/mmbtu trading in a 0.761 cent range including the overnight session. The Energy Information Administration currently estimates that domestic dry natural gas production for September reached a record-high 98.8 billion cubic feet per day. The record production contributed to September’s natural gas storage builds totaling 428 bcf, which were +20.0% higher than the five-year average. Despite the above average builds, natural gas inventories at the end of the month were 3,135 bcf, which is -8.0%, or 280 bcf, below the five-year average. domestic liquefied natural gas exports averaged 10.1 bcf/d in September, as liquefaction terminals other than the off-line Freeport terminal operated at near full 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.
