Coquest Daily Energy Report

Crude Oil Futures for March 2023 settled down $1.08 @ $79.06/bbl. trading in a $2.15 range including the overnight-RBOB settled down 4.26/cpg and Heating Oil settled up 3.44/cpg. Leading market advisor notes that the industry is not spending enough to secure future production and that spare capacity globally is declining and this could tip the oil market into a serious supply problem next year, the price for a barrel of Brent could top $100.00/bbl. before then. According to Jeff Currie, rising demand from China and sanctions on Russian oil will contribute to the deficit, which he expects to manifest in the second quarter of this year. In response, producers will tap their spare capacity, leaving it lower than it was before. Eventually, this will lead to a serious imbalance between supply and demand. “Right now, we’re still balanced to a surplus because China has still yet to fully rebound,” Currie told reporters.

Natural Gas Futures for March 2023 settled up $0.162 @ $2.567/mmbtu trading in a 0.208 cent range including the overnight session. According to leading industry advisor, there were “signs of progress” at Freeport LNG. “The facility can now begin cooling down some piping and re-instate boil-off-gas (BOG), which is expected to take 11 days, the first in a series of approvals required for restarting the facility.” The expected timeline for restart remains mid-March-however there remains other regulatory hurdles. It’s expected it will take about 60 days from restart to 100% percent utilization of 2.35 billion cubic feet per day.


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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.