Coquest Daily Energy Report

Crude Oil Futures for March 2023 settled down $1.49 @ $80.13/bbl. trading in a $2.56 range including the overnight-RBOB settled down 4.78/cpg and Heating Oil settled down 12.37/cpg. The Energy Information Administration currently expects U.S. distillate inventories will increase in 2023 due to increasing runs as refiners attempt to capitalize on currently high crack spreads values. However, refiners have a limited ability to shift their product yields, so its expected Gasoline production to increase in 2023 alongside distillate production. As a result, we forecast gasoline inventories will rise above their previous five-year average from May 2023 through the end of the year. Although net U.S. exports of gasoline will increase in 2023, it’s expected these volumes will come from increased gasoline production. The EIA currently forecast almost no change in U.S. gasoline consumption over the next two years.

Natural Gas Futures for February 2023 settled down $0.189 @ $3.258/mmbtu trading in a 0.371 cent range including the overnight session. According to leading analytics firm, Freeport LNG will restart in March at the earliest. Also noted in the report, “a full ramp up” at the site was not expected until “mid-year”. Freeport LNG’s restart will support U.S. LNG exports this calendar year, but the timing remains uncertain. Market participants have struggled for months to unravel the restart mystery. Some marginal amounts of feed gas were nominated to the facility this past week, slightly higher (35 MMcfd) than they have taken in since the facility went cold, but there are doubts that this could be signs of life for the plant.


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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.