Coquest Daily Energy Report

Crude Oil Futures for December 2022 settled down $0.35 @ $79.73/bbl. trading in a $5.23 range including the overnight-RBOB settled up 1.63/cpg and Heating Oil settled down 2.08/cpg. According to Energy Information Administration data, among the non-OPEC participants in OPEC+, the majority of the reductions in OPEC+ production will come from Russia, where we expect production declines as the result of Russia’s invasion of Ukraine and forth coming sanctions imposed on Russia rather than the newly announced production cuts. The EIA expects that Russia’s total liquids production will fall from an average of 10.9 million/bpd in 3Q22 to 10.8 million/bpd in 4Q22, before falling further to an average of 9.3 million/bpd for all of 2023. This forecast is subject to significant uncertainty around the extent to which upcoming EU sanctions will impact trade flows and the ability for oil suppliers in Russia to find alternative buyers.

Natural Gas Futures for December 2022 settled up $0.473 @ $6.776/mmbtu trading in a 0.692 cent range including the overnight session. On Friday, Freeport LNG Development, L.P. provided an update regarding the ongoing reconstruction and resumption of operations at its natural gas liquefaction and LNG export facility. As of November 14th, the reconstruction work necessary to commence initial operations, including utilization of all three liquefaction trains, two LNG storage tanks and one dock, were approximately 90% complete, with all reconstruction work anticipated to be completed by the end of November. Proposed remedial work activities for a safe restart of initial operations have been submitted to the relevant regulatory agencies for review and approval. Subject to Freeport LNG meeting its regulatory requirements, it is targeting initial production at the facility in mid-December.


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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.