Coquest Daily Energy Report

Crude Oil Futures for March 2022 settled up $0.05 @ $88.20/bbl trading in a $2.32 range including the overnight-RBOB settled up 2.08 cpg and Heating Oil settled up 2.55/cpg. NYMEX traded Crude Oil futures were lower early Tuesday (CLH22 -$1.12/bbl.) after a strong start to the week-staying close to a seven year high and weighed by speculation OPEC and their workin allies could go further than expected to add supply at a meeting this week. While OPEC and their working allies, have been expected to maintain their policy of gradual production increases at a meeting on Wednesday, leading market advisors say there is a chance of further steps. WTI futures Oil were also pressured by expectations of this week’s U.S. supply data that will show an increase in crude stockpiles. A majority of analysts expect crude storage to have risen by +1.8 million barrels for the week.

Natural Gas Futures for March 2022 settled down $.123 @ $4.751/mmbtu trading in a 0.354 cent range including the overnight session. According to Energy Information Administration data, the share of U.S. electric power generation produced by natural gas averaged 37.0% during calendar 2021 and the Administration expects it will average 35.0% in 2022 and 34.0% during 2023. The EIA’s forecast for the natural gas share as a generation fuel declines primarily as a result of increased generation from new renewable energy generating capacity. Coal’s average generation share rose to 23.0% in 2021 as a result of higher natural gas prices, but we expect it to decline slightly over the next two years, averaging near 22.0% in 2022 and 2023. The EIA currently forecasts the nuclear share of generation will remain near 20% over the next two years.


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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.