Coquest Daily Energy Report

Crude Oil Futures for February 2023 settled up $0.86 @ $74.63/bbl. trading in a $3.27 range including the overnight-RBOB settled up 4.83/cpg and Heating Oil settled up 3.15/cpg. Last Thursday morning’s (to accommodate for Holiday) weekly Energy Information Administration domestic Crude Oil storage data showed an increase of +1.7 million barrels for the week ending December 30th, 2022. Gasoline inventories decreased by -300 k/bbl. and Distillates decreased for the time frame by -1.4 mil/bbl., domestic refiners ran at 79.6% versus 92.0% during the prior week. Total domestic crude oil storage now stands at 420.6 mil/bbls. (ex-SPR) an increase of approximately +1.5 million barrels over the past five weeks while Gasoline stocks have increased +8.9 mil/bbls. to 222.6 mil/bbl. over the same time frame. According to the weekly data, total commercial petroleum inventories decreased by -3.1 million barrels for the week. The Department of Energy released 2.7 million barrels from the Strategic Petroleum Reserves in the week ending December 30th.

Natural Gas Futures for February 2023 settled up $0.200 @ $3.910/mmbtu trading in a 0.347 cent range including the overnight session. According to Energy Information Administration data, dry natural gas production increased during 2022 in the United States, averaging more than 100 bcf/d in October and November and exceeding pre-pandemic monthly production records from calendar 2019. Growth in natural gas production was driven by increased drilling activity in the Haynesville region and in the Permian region. Recent pipeline infrastructure expansions in both these regions facilitated those increases. The EIA currently forecasts, production to grow slightly in 2023, averaging between 100 bcf/d and 101 bcf/d for the year, about +2.0% more than in 2022. Production in the current forecast for 1H23 is limited by pipeline constraints and declining market prices.


Receive the full Coquest Daily Energy Report by signing up today.

To send a question to the author, or to learn more about this topic, click here.

For assistance with brokerage or hedging services, please click here.


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.