Coquest Daily Energy Report

Crude Oil Futures for April 2022 settled up $0.19 @ $92.10/bbl trading in a $3.26 range including the overnight-RBOB settled up 1.45cpg and Heating Oil settled up 1.04/cpg. The insufficient investment in the oil and gas industry hurts consumers, raises concerns about short-term supply shortages, and creates challenges for policymakers, Saudi Energy Minister Prince Abdulaziz bin Salman said at the 2022 IPT Conference in Riyadh this weekend. The campaign against oil and gas investments is shortsighted, the sole focus on renewables is a mistake, said the most influential producer of the OPEC+ coalition. “The net-zero does not mean cherry-picking, net-zero does not mean zero oil,” he added. While the supermajors and domestic shale producers are not racing to invest in new supply, Saudi Arabia plans to raise its crude oil production capacity by 1 million barrels per day within the next five years.

Natural Gas Futures for March 2022 settled up $.125 @ $4.623/mmbtu trading in a 0.252 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 -115 and -130 billion cubic feet for the week ended February 18th, 2022. That compares with a decrease of -190 bcf in the preceding week, a pull of -338 bcf a year earlier and a five-year average withdrawal of -174.2 bcf. Updated weather forecasts show an overall moderation of the recent cold snap gripping the lower forty-eight, with near normal temperatures prevailing over the next eight to fourteen 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.