Coquest Daily Energy Report

Crude Oil Futures for April 2023 settled down $0.94 @ $75.72/bbl. trading in a $2.50 range including the overnight-RBOB settled down 8.38/cpg and Heating Oil settled down 7.30/cpg. Globally traded Crude Oil prices continued to struggle on Wednesday and into Thursday on fears that more aggressive U.S. interest rate hikes will pressure economic growth for longer than what was originally anticipated. According to leading market advisors, “oil prices are still seeing downward pressure due to the hawkish comments coming out of the Fed indicating higher interest rates for a longer period of time.” Fed Chair Powell comments also helped propel the US Dollar to three month highs which also helped to cap oil prices over the last few trading sessions.

Natural Gas Futures for April 2023 settled down $0.008 @ $2.543/mmbtu trading in a 0.179 cent range including the overnight session. Because of the Freeport shutdown, U.S. LNG exports declined to an average 10.0 bcf/d from June 2022 through December 2022, after peaking at 11.7 bcf/d in March. When the new Calcasieu Pass LNG export facility was commissioned it partially offset the decline in exports from Freeport LNG-exports from Calcasieu Pass have averaged 1.2 bcf/d since June 2022. This year, once all three trains at Freeport LNG return to service, the EIA expects U.S. LNG exports to exceed 12.0 bcf/d, and the United States will remain the world’s largest LNG exporter. The EIA currently forecast that U.S. LNG exports will increase further, to approximately 14.0 bcf/d, by December 2024 because some LNG export projects under construction are expected to start operations by then.


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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.