Coquest Daily Energy Report

Crude Oil Futures for February 2022 settled up $2.99 @ $81.22/bbl trading in a $3.23 range including the overnight-RBOB settled up 8.20/cpg and Heating Oil settled up 7.60/cpg.  China is hosting foreign ministers this week from major oil producers and exporters in the Middle East to discuss boosting energy ties and a possible free trade agreement, while Beijing is concerned with the unrest in central Asian oil producer Kazakhstan. More than 160 people were killed in Kazakhstan in one week of unrest during protests that affected production at the country’s largest oilfield, Tengiz, operated by Chevron. The U.S. company said on Sunday that production at the oilfield was gradually being restored to its usual volumes following several days of curtailed output amid logistics disruptions due to contractors supporting the protests.

Natural Gas Futures for February 2022 settled up $0.170 @ $4.249/mmbtu trading in a .254 cent range including the overnight session. Enterprise Products Partners LP agreed to buy Navitas Midstream Partners LLC from Warburg Pincus LLC for $3.25 billion in cash to add natural gas pipeline and processing assets in the Permian Basin. The acquisition, Enterprise’s largest since 2014, will expand the company’s reach into the Midland Basin, part of the Permian, to include gas processing and natural gas liquids. Drilling activity in the Midland Basin represents about 20% of active onshore drilling rigs in the U.S., according to Enterprise. “We do not have a natural gas or NGL presence in the Midland Basin other than downstream pipelines,” Jim Teague, Enterprise’s co-chief executive officer, said Monday in a statement, referring to natural gas liquids. “This acquisition will give us an entry point.”

 

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