Coquest Daily Energy Report

Crude Oil Futures for April 2023 settled up $0.78 @ $80.46/bbl. trading in a $2.31 range including the overnight-RBOB settled up 4.61/cpg and Heating Oil settled down 2.65/cpg. Global Oil prices slipped early on Monday after China set a lower than expected target for economic growth this year at around 5.0%, and as investors cautiously awaited U.S. Federal Reserve Chair Jerome Powell’s testimony this week. According to market advisors, crude remains in a tug-of-war between optimism over Chinese reopening and nervousness over an extremely hawkish Fed hurting the domestic economy. Premier Li Keqiang said on Sunday the foundation for stable growth in China needed to be consolidated, insufficient demand remained a pronounced problem, and the expectations of private investors and businesses were unstable.

Natural Gas Futures for April 2023 settled down $0.437 @ $2.572/mmbtu trading in a 0.298 cent range including the overnight session. One of China’s smaller liquefied natural gas importers has procured a shipment from the open spot market, indicating a return by the nation’s price sensitive buyers after the energy crisis halted purchases for about a year-and-a-half. Beijing Gas bought a shipment for April delivery to China, according to traders with knowledge of the matter. This is the first purchase by a so-called Chinese second-tier importer (firms unaffiliated with the state-owned giants) that handle most of the country’s trade — since summer 2021 when the commodity became too costly. Beijing Gas purchased the shipment at the high-$13 per million British thermal units range, the lowest level since summer 2021, said the traders.


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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.