Coquest Daily Energy Report
Crude Oil Futures for January 2023 settled down $3.050 @ $76.93/bbl. trading in a $5.95 range including the overnight-RBOB settled down 7.85/cpg and Heating Oil settled down 16.87/cpg. At Mondays scheduled virtual meeting, OPEC+ producers decided to stick to their existing policy of reducing oil production by 2 million barrels per day from November until the end of 2023. Energy analysts and traders had expected OPEC+ to consider fresh price supporting production cuts ahead of a possible double blow to Russia’s oil revenues. The global crude market is in much better shape two months ago, when OPEC+ held its face-to-face meeting in Vienna Deputy Prime Minister Alexander Novak said, however, many uncertainties remain, including high inflation rates and growing sovereign debt, as well the continuation of Covid-19 outbreaks in China. OPEC+’s decision in October to reduce output by 2 million barrels a day was the right one, the group said in its decision statement.
Natural Gas Futures for January 2023 settled down $0.704 @ $5.577/mmbtu trading in a 0.496 cent range including the overnight session. Freeport LNG on Friday again delayed the restart of the second-biggest U.S. liquefied natural gas export facility, moving its forecast for resuming processing to year’s end, pending regulatory approval. Last month, the company said it was on track to restart the plant sometime in mid December and would get most of its 15 million tonnes per annum production back by January with a return to full service in March. “Based upon current progress, and subject to us continuing to meet necessary regulatory requirements, we now anticipate that the restart of our liquefaction facility to be achieved around year end,” Freeport LNG spokesperson Heather Browne said.
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