Coquest Daily Energy Report
Crude Oil Futures for January 2023 settled up $0.91 @ $80.95/bbl. trading in a $2.51 range including the overnight-RBOB settled up 10.34/cpg and Heating Oil settled down 2.60/cpg. Global Crude Oil continued to rally early Tuesday after Saudi Arabia said OPEC+ was remaining with output cuts and could take further steps to balance the market, outweighing global recession worries and concern about China’s rising COVID-19 case numbers. Saudi Energy Minister Prince Abdulaziz bin Salman on Monday was also quoted by state news agency SPA as denying a Wall Street Journal report that said OPEC was considering boosting output and sent prices plunging by more than 5%.”Crude oil prices are trying to recover their losses,” said leading analysts. “That Saudi Arabia has denied there was any discussion about an increase in oil supply with OPEC and its allies has supported the market today.” OPEC, Russia and other allies meet on Dec. 4th, a day before the start of European and G7 measures in retaliation for Russia’s invasion of Ukraine, which could also support the market.
Natural Gas Futures for December 2022 settled up $0.003 @ $6.779/mmbtu trading in a 0.519 cent range including the overnight session. France’s president Emmanuel Macron has accused the United States of a “double standard” because of the difference between the price at which liquefied natural gas produced in the U.S. sells in Europe and the price at which natural gas sells within the U.S. “The North American economy is making choices for the sake of attractiveness, which I respect, but they create a double standard,” Macron said, also adding that “they allow state aid going to up to 80% on some sectors while it’s banned here – you get a double standard.” Macron wasn’t alone among European national leaders in being unhappy about gas prices, as many as 15 leaders were unhappy and they insisted that the EU imposes a price cap on all natural gas imports, regardless of origin.
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