Coquest Daily Energy Report
Crude Oil Futures for January 2023 settled up $0.96 @ $78.20/bbl. trading in a $3.36 range including the overnight-RBOB settled up 0.15/cpg and Heating Oil settled up 8.05/cpg. Global energy benchmarks rallied back from their lowest levels in nearly a year on Monday, with West Texas Intermediate ending up on the session, bolstered by talk of OPEC and their working allies floating production cuts that would potentially offset concerns about strict COVID-19 curbs in China. The rumors of a possible production cut outweighed the earlier sell-off built on the premise of a weak outlook out for China, where hundreds of demonstrators and police clashed on Sunday over strict COVID restrictions that have limited free moment among millions of residents. China has stuck with President Xi Jinping’s zero-COVID policy even as much of the world has lifted most restrictions.
Natural Gas Futures for January 2023 settled up $0.039 @ $7.235/mmbtu trading in a 0.329 cent range including the overnight session. Germany is set to receive new flows of Qatari liquefied natural gas from 2026 after Qatar Energy and ConocoPhillips on Tuesday signed two sales and purchase agreements for its export covering at least a 15-year period. The deal, the first of its kind to Europe from Qatar’s North Field expansion project, will provide Germany with 2 million tonnes of LNG annually. “The agreements mark the first ever long-term LNG supply agreement to Germany, with a supply period that extends for at least 15 years, thus contributing to Germany’s long-term energy security,” Saad al-Kaabi said in a joint news conference with ConocoPhillips CEO Ryan Lance.
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