Coquest Daily Energy Report

Crude Oil Futures for April 2023 settled up $1.69 @ $69.33/bbl. trading in a $2.83 range including the overnight-RBOB settled up 0.29/cpg and Heating Oil settled up 0.31/cpg. Russia was the single largest crude oil supplier to China in January and February, overtaking Saudi Arabia according to Chinese customs data. As China accelerated the buying of cheap Russian crude oil at discounts to global benchmarks, Chinese imports of crude from Russia increased by +23.8% year over year to 1.94 million barrels per day for January and February 2023, per data provided by China’s General Administration of Customs. During the first two months of this year, Russia beat Saudi Arabia to the top spot of Chinese crude oil suppliers as imports of Saudi crude fell by -4.7% or the equivalent of 1.72 mil/bpd, compared to 1.81 mil/bpd for the same period of 2022.

Natural Gas Futures for April 2023 settled up $0.134 @ $2.348/mmbtu trading in a 0.231 cent range including the overnight session. Domestically traded natural gas futures remained near a three-week low on Wednesday after forecasts for less cold weather and lower demand this week than previously expected and with an increase in gas output so far this month. That lack of price movement came despite forecasts for more demand next week than previously expected and record gas flows to liquefied natural gas export plants since the return in February of Freeport LNG’s plant in Texas from an eight-month outage. According to market advisors, the year-over-year (+35.9% or 521 bcf) and five year average (+23.7% or 378 bcf) tell the story, ‘there is plenty of gas flowing at the moment’.


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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.