Coquest Daily Energy Report
Crude Oil Futures for March 2022 settled up $2.29 @ $85.60/bbl trading in a $2.72 range including the overnight-RBOB settled up 6.15 cpg and Heating Oil settled up 4.15 cpg. According to EIA data, Crude oil production from OPEC member countries averaged 26.3 million barrels per day in 2021, up from 25.6 mil/bpd. during calendar 2020. The EIA currently forecasts that average OPEC crude oil production will rise by +2.5 mil/bpd to average 28.8 mil/bpd in 2022 and average 28.9 mil/bpd in 2023. Data also shows U.S. crude oil production averaged 11.2 mil/bpd in 2021. The EIA currently expects production to average 11.8 mil/bpd in 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 domestic record is 12.3 million barrels per day, set in 2019.
Natural Gas Futures for February 2022 settled up $0.026 @ $4.054/mmbtu trading in a .190/mmbtu cent range including the overnight session. The Energy Information Administration estimates that U.S. liquefied natural gas exports averaged 9.8 billion cubic feet per day during calendar 2021, compared with 6.5 bcf/d in 2020. The EIA expects that U.S. LNG export capacity increases will contribute to LNG exports averaging 11.5 bcf/d in 2022 and 12.1 bcf/d in 2023. U.S. dry natural gas production averaged 93.5 bcf/d in 2021, up +2.0 bcf/d from 2020. Natural gas production in the forecast averages 96.0 bcf/d for all of 2022 and then rises to 97.6 bcf/d in 2023. U.S. natural gas inventories ended December 2021 at 3.2 trillion cubic feet, +3.0% more than the 2016–20 average. The EIA currently forecasts inventories will end March 2022 at 1.8 tcf, which would be +8.0% higher than the 2017–21 average for the end of March totals.
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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.
