Coquest Daily Energy Report

Crude Oil Futures for February 2022 settled up $1.53 @ $86.96/bbl trading in a $2.14 range including the overnight-RBOB settled up 2.52 cpg and Heating Oil settled up 1.83 cpg. The Energy Information Administration estimates that Crude oil production from OPEC member countries averaged 26.3 million barrels per day in calendar 2021, up from 25.6 mil/bpd in 2020. In the EIA’s current forecast, average OPEC crude oil production will rise by +2.5 mil/bpd to average 28.8 mil/bpd during calendar 2022 and average 28.9 in 2023. According to EIA data, U.S. crude oil production averaged 11.2 million barrels per day in 2021. The EIA currently expects production to average 11.8 mil/bpd during 2022 and to rise to 12.4 mil/bpd in 2023-which would be the highest annual average U.S. crude oil production on record. The current record is 12.3 million barrels per day set in 2019.

Natural Gas Futures for February 2022 settled down $0.252 @ $4.031/mmbtu trading in a .375 cent range including the overnight session. Preliminary expectations for this Thursday’s mornings weekly Energy Information Administration Natural Gas storage report calls for a withdrawal of between -193 and -203 billion cubic feet for the week ended January 14th, 2022. That compares with a decrease of -179 bcf in the preceding week, a pull of -187 bcf a year earlier and a five year average withdrawal of -157.2 billion cubic feet. Updated weather forecasts show seasonal averages for the Southwest regions of the lower forty-eight, while the Great Lakes and entire Eastern seaboard look to experience below to much below average temperatures over the next six to ten day time frame.


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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.