Coquest Daily Energy Report

Crude Oil Futures for March 2022 settled up $1.33 @ $88.15/bbl trading in a $1.91 range including the overnight-RBOB settled up 1.65/cpg and Heating Oil settled up 0.33/cpg. According to market advisors, given the markets current tightness-crude oil prices certainly can rally above the $100.00/bbl. mark- particularly if OPEC+ supply increases continue to lag their intended target, U.S. producers fail to respond or if the Ukraine-Russia crisis worsens. Demand was seen growing by 3 to 5 million barrels per day in 2022, with analysts seeing a muted impact from the current COVID-19 surge. Brent crude futures topped $90.00 a barrel for the first time since 2014 last week on concerns over the likely supply hit from a standoff between the West and Russia over Ukraine. Most analysts agree however, that OPEC and their allies are likely to proceed with its plans to raise monthly output by 400,000/bpd. this month-despite some members struggling with capacity constraints.

Natural Gas Futures for March 2022 settled up $0.235 @ $4.874/mmbtu trading in a .362 cent range including the overnight session. Japan is set to import the highest quantity of coal in January in over two years as utilities scramble for supplies for power generation amid high spot month liquefied natural gas prices, citing intelligence firm Kpler and Japanese customs data. A colder winter in Japan has raised electricity demand and domestic utilities are looking to buy more coal for power generation. Japan is expected to import over 17.3 million tons of coal in January, according to Edwin Toh, a dry bulk manager at Kpler. The volume would be Japan’s highest level since December 2019 and around +5.0% over the five-year seasonal average, Japanese customs data showed. Coal prices have also surged in the past weeks due to a month-long export ban on top coal exporter Indonesia as well as the Russia-Ukraine crisis-which has the commodity markets concerned over disruptions of energy exports, including coal, from Russia.


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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.