Coquest Daily Energy Report
Crude Oil Futures for February 2023 settled down $3.33 @ $76.93/bbl. trading in a $4.90 range including the overnight-RBOB settled down 11.71/cpg and Heating Oil settled down 20.85/cpg. Global Crude Oil prices were lower on Tuesday in volatile trade as weak demand data from China and a gloomy domestic economic outlook weighed on energy markets. According to market advisors, the outlook remains highly uncertain. The Chinese government has raised export quotas for refined oil products in the first half of 2023 and traders attributed the increase to expectations of poor domestic demand as the world’s largest crude importer continue to battle waves of COVID-19 infections. The International Monetary Fund Managing Director Kristalina Georgieva said on Sunday that the United States, Europe and China – the main engines of global growth – were all slowing simultaneously, making 2023 tougher than 2022 for the global economy.
Natural Gas Futures for February 2023 settled down $0.487 @ $3.988/mmbtu trading in a 0.450 cent range including the overnight session. The warmer-than-usual start to the winter in Europe and Asia and forecasts of milder weather in the United States following the New Year have eased concerns about natural gas shortages for the start of calendar 2023. Across the EU, gas storage sites were 83.5% full as of January 1, with Germany’s storage at over 90%, according to data from Gas Infrastructure Europe. Natural gas prices in Europe dropped on the first trading day of the year to their lowest level since February 21, 2022. According to market advisors, demand this week is expected at very low levels.
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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.
