Coquest Daily Energy Report

Crude Oil Futures for February 2022 settled up $1.61 @ $85.43/bbl trading in a $2.44 range including the overnight-RBOB settled up 1.28cpg and Heating Oil settled up 3.97/cpg. According to Energy Information Administration monthly data, global consumption of petroleum and liquid fuels averaged 96.9 million barrels per day in calendar 2021, up by +5.0 mil/bpd from 2020, when consumption fell significantly because of the pandemic. The EIA currently expects global liquid fuels consumption will grow by +3.6 mil/bpd in 2022 and +1.8 mil/bpd in 2023. The EIA currently estimates global liquid fuels inventories fell by an average of -1.4 mil/bpd in 2021 compared with inventory growth of +2.1 mil/bpd in 2020. Global oil inventories rise in the current forecast, increasing at a rate of +0.5 mil/bpd in 2022 and +0.6 million barrels per day in calendar 2023.

Natural Gas Futures for February 2022 settled up $0.021 @ $4.283/mmbtu trading in a .174 cent range including the overnight session. For almost a month, Russian gas supplies via the Yamal-Europe gas pipeline were moving eastward from Germany to Poland, a reverse of the usual direction. Flows via Ukraine are also lower than normal and come as temperatures are set to remain colder for the next month. Russia could boost gas deliveries to the continent by at least a third from current levels, but it’s keeping spot sales capped despite high prices, IEA Executive Director Fatih Birol said on a call with reporters on Wednesday. “There are strong elements of tightness in the European gas market due to Russia’s behavior,” Birol said.


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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.