Coquest Daily Energy Report

Crude Oil Futures for January 2023 settled down $1.17 @ $76.11/bbl. trading in a $2.44 range including the overnight-RBOB settled down 7.76/cpg and Heating Oil settled up 0.66/cpg. The operator of the Keystone Pipeline System said that its largest breach yet has been contained for now-the Environmental Protection Agency said in a statement Saturday, “The discharge has been contained, and no drinking water has been impacted”. The failure along a 96-mile segment in parts of Washington County, Kansas; Clay County, Kansas; and Jefferson County, Nebraska, renews concern over pipeline safety after the demise of the contentious Keystone XL pipeline project. TC Energy (the Canadian parent of day-to-day pipeline operator) said in a statement Saturday that the spill was no longer moving downstream and had mobilized 250 crews to handle cleanup and has deployed booms and vacuum trucks to stop the oil spread.

Natural Gas Futures for January 2023 settled up $0.540 @ $6.970/mmbtu trading in a 0.678 cent range including the overnight session. Long a big exporter of liquefied natural gas to Asian countries, Qatar is poised to become a critical energy source for Europe, which is currently pivoting away from its dependence on Russia. Qatar is also drawing closer to China, undermining Russian hopes of diverting to Asia most of the energy Europe is no longer buying. Qatar, many energy advisors say, is becoming the Saudi Arabia of natural gas, as an indispensable energy supplier with vast reserves and very low costs. Qatar is virtually tied with Australia and the United States as the largest producer of liquefied natural gas, however, market advisors are quick to note, Australian exports have likely peaked and some of its aging fields are beginning to decline.


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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.