Coquest Daily Energy Report
Crude Oil Futures for March 2023 settled up $0.97 @ $78.87/bbl. trading in a $2.70 range including the overnight-RBOB settled up 4.46/cpg and Heating Oil settled up 7.15/cpg. House Republicans passed a bill Friday that aims to curb President Biden’s ability to tap the nation’s petroleum reserves, a bid by the chamber’s new majority to rebuke the White House for using massive oil releases last year to tamp down escalating gasoline prices. However, the bill, H.R. 21 (118), which passed 221-205, was largely a messaging effort by Republicans. The Democratically controlled Senate has no intention of taking it up and the White House has already vowed to veto the bill if it makes it to Biden’s desk. The bill would prohibit non-emergency releases from the Strategic Petroleum Reserve unless the government approves a corresponding increase in domestic oil and gas production on federal lands.
Natural Gas Futures for March 2023 settled up $0.007 @ $2.684/mmbtu trading in a 0.107 cent range including the overnight session. Concern about future natural gas supplies, particularly in Europe, grew following Russia’s full-scale invasion of Ukraine in February 2022 and contributed to the increase in contracting with new LNG projects in the United States. Europe increased its LNG imports by +66.0% or +5.9 bcf/d in 2022 compared with 2021, according to leading data, which was the result of reduced natural gas deliveries by pipeline from Russia and record-high natural gas prices at trading hubs in Europe. By expanding its LNG import capacity, Europe will be able to receive +34.0% more LNG in 2024 compared with 2021.
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