Coquest Daily Energy Report

Crude Oil Futures for April 2023 settled down $2.88 @ $77.58/bbl. trading in a $3.88 range including the overnight-RBOB settled down 9.58/cpg and Heating Oil settled down 8.91/cpg. The United Arab Emirates has been taking more cargoes of Russian crude oil, according to ship tracking data and trading sources. The development highlights growing cooperation between Russia and top Gulf oil producers, such as Saudi Arabia and the UAE. Gulf Arab states have resisted U.S. pressure to help isolate Russia and to pump more oil to help replace Russian supply after it came under Western sanctions. Ship tracking data shows about 1.5 million barrels of Russian crude have gone to the UAE since November 2022, with volumes either beginning or moving higher since early 2022. China, India and several African and other Middle Eastern nations have also increased Russian crude and products imports.

Natural Gas Futures for April 2023 settled up $0.115 @ $2.687/mmbtu trading in a 0.192 cent range including the overnight session. As of Saturday morning, Freeport LNG nominations surged to nearly 1.5 Bcf/d, which implies that the terminal now has two full LNG trains operating. The increase in Freeport volumes pushed net US LNG feed gas demand above 14.0 Bcf/d, which is a new all-time high. Thus far, the FERC has given full regulatory approval for the restart of Trains 2 & 3, and there is a pending request by Freeport LNG to bring liquefaction Train 1 in the near term. If the FERC gives them clearance to activate Train 1 in a timely manner the terminal could reach 2 Bcf/d by the end of March.


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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.