Coquest Daily Energy Report

Crude Oil Futures for February 2022 settled down $0.06 @ $86.90/bbl trading in a $1.82 range including the overnight-RBOB settled up 0.52/cpg and Heating Oil settled down 2.05/cpg. The American Petroleum Institute’s weekly Crude Oil storage report released late Wednesday afternoon (to accommodate for holiday) showed that domestic crude supplies increased by +1.4 million barrels for the week ended January 14th, 2022. The weekly API data also showed a storage increase of +3.5 mil/bbl for Gasoline and a draw of -1.2 mil/bbl for Distillates. The Energy Information Administration weekly petroleum storage report released early Thursday morning (to accommodate for holiday) showed that domestic crude supplies increased by +500,000 barrels for the week ended January 14, 2022. The weekly EIA data also showed a storage increase of +5.9 mil/bbl for Gasoline and a draw of -1.4 mil/bbl for Distillates. Total commercial petroleum inventories decreased last week by -1.5 million barrels last week.

Natural Gas Futures for February 2022 settled down $0.229 @ $3.802/mmbtu trading in a .256 cent range including the overnight session. According to leading market advisors, it appears that January 2022 will wind up the coldest January since 2014. Looking ahead, the main question now is whether the colder pattern hangs on into February with colder temperatures this week set to require 19 bcf/d of additional physical demand. Looking at other key supply and demand factors, estimates showed liquefied natural gas feed gas demand topping 13.2 bcf/d over the weekend before receding by -0.8 bcf/d early Monday. Thursday mornings weekly Energy Information Administration natural gas storage data showed a draw of -206 bcf for the week ended January 14th, 2022.

 

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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.

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