Coquest Daily Energy Report
Crude Oil Futures for June 2023 settled up $1.82 @ $73.16/bbl. trading in a $2.65 range including the overnight-RBOB settled up 8.26/cpg and Heating Oil settled up 6.30/cpg. The Energy Information Administration Brent crude oil spot price forecast averages $85.00 per barrel during calendar 2023, up +$2.00/bbl. from last month’s forecast. The higher price forecast reflects a forecast for less global production in 2023 and a relatively unchanged outlook for total global oil consumption. Despite the higher price forecast, recent issues in the global banking sector raise the potential that economic growth and subsequently oil demand growth will be lower than the original forecast, which has the potential to result in lower oil prices.
Natural Gas Futures for June 2023 settled up $0.101 @ $2.238/mmbtu trading in a 0.108 cent range including the overnight session. New York is the first state in the country to ban natural gas and other fossil fuels in most new buildings – a major win for climate advocates, but a move that could spark pushback from fossil fuel interests. Facing mounting pressure from environmental advocates and climate-minded voters, Gov. Kathy Hochul and Democratic lawmakers, who control the New York Senate and Assembly, approved the new $229 billion state budget containing the provision last week. The law bans gas-powered stoves, furnaces and propane heating and effectively encourages the use of climate-friendly appliances such as heat pumps and induction stoves in most new residential buildings across the state. It requires all-electric heating and cooking in new buildings shorter than seven stories by 2026, and for taller buildings by 2029.
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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.
