Coquest Daily Energy Report

Crude Oil Futures for December 2022 settled down $3.95 @ $81.64/bbl. trading in a $4.05 range including the overnight-RBOB settled down 5.33/cpg and Heating Oil settled down 8.88/cpg. According to the International Energy Agency, globally observed inventories fell by -14.2 million barrels in September as OECD and non-OECD stocks plunged by -45.5 million barrels and -19.3 million barrels respectively. “Oil markets remain finely balanced going into the winter months, with OECD stocks trending at the lowest levels since 2004,” the IEA said in its closely watched Oil Market Report for November. “The approaching EU embargoes on Russian crude and oil product imports and a ban on maritime services will add further pressure on global oil balances and in particular, on already exceptionally tight diesel markets. A proposed oil price cap may help alleviate tensions, yet a myriad of uncertainties and logistical challenges remain,” said the international agency.

Natural Gas Futures for December 2022 settled up $0.169 @ $6.369/mmbtu trading in a 0.385 cent range including the overnight session. Germany and Poland announced separate takeovers of natural gas companies that had links to Russian energy giant Gazprom on Monday, saying the moves were aimed at securing supply as Europe struggles with an energy crisis. Germany said it is nationalizing the former German subsidiary of Gazprom months after it was put under the control of a government agency. The government cited the debt load of the company, which has been renamed Securing Energy for Europe, and said it was making the move to head off the danger of bankruptcy and ensure that it keeps running. Poland’s government, meanwhile, said it has taken “temporary compulsory management” of Gazprom’s share in the Yamal gas pipeline system in Polish territory.

 

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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.

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