Coquest Daily Energy Report

Crude Oil Futures for April 2023 settled up $1.37 @ $77.05/bbl. trading in a $2.28 range including the overnight-RBOB settled up 5.80/cpg and Heating Oil settled up 0.53/cpg. The Energy Information Administration currently expects crude oil production in Russia to average 9.9 mil/bpd in calendar 2023, down -1.1 mil/bpd from 2022. The forecast for Russia’s 2023 production is +0.4 mil/bpd more than in the January report because the latest crude oil liftings data suggest that Russia’s exports have remained higher than expected following the EU’s ban on seaborne imports of crude oil from Russia that began on December 5. However, it is still forecast Russia’s oil production to fall in the coming months, as we expect the EU’s ban on seaborne petroleum products from Russia that began February 5th will cause refineries in Russia to reduce crude oil inputs, which will disrupt crude oil production.

Natural Gas Futures for April 2023 settled up $0.016 @ $2.747/mmbtu trading in a 0.210 cent range including the overnight session. The Energy Information Administration currently forecast that the Henry Hub natural gas spot price will average $3.400 per million British thermal units (MMBtu) in calendar 2023, down almost -50.0% from last year and down about -30.0% from the January Short-Term Energy Outlook forecast. The revision in the outlook for Henry Hub prices is a result of significantly warmer-than-normal weather in January that led to much less-than-normal consumption of natural gas for space heating and pushed inventories well above the five-year average.


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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.