Coquest Daily Energy Report

Crude Oil Futures for June 2023 settled down $4.00 @ $71.66/bbl. trading in a $4.69 range including the overnight-RBOB settled down 11.47/cpg and Heating Oil settled down 9.31/cpg. Global crude oil prices continued to languish during Tuesdays trade on weak economic data from China and expectations of probable interest rate hikes by both the U.S. Federal Reserve and European Central Bank later this week. Price pressure followed official data from Sunday showing manufacturing activity in China declined unexpectedly in April. This marks the first contraction in the manufacturing purchasing managers’ index since December. According to market advisors, market participants should look for market direction from the expected interest rate hikes by inflation-fighting central banks, which could slow economic growth and curtail energy demand.

Natural Gas Futures for June 2023 settled down $0.104 @ $2.214/mmbtu trading in a 0.159 cent range including the overnight session. Daily pipeline gas exports to Europe by Kremlin controlled Gazprom in April rose by about +7.5% from March, in part due to an increase in transit via Turkey. The calculations, based on data from a leading European gas transmission group and Gazprom’s daily reports on its transit via Ukraine, showed that average daily pipeline exports of Russian gas to Europe increased to 75.6 million cubic metres from 70.3/mcm in March. Total Gazprom gas supplies via Ukraine and a line of the TurkStream pipeline was about 2.27 billion cubic metres in April, calculations show. Gazprom gas supplies to Europe total about 8.14/bcm since the start of the year.


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