Coquest Daily Energy Report

Crude Oil Futures for April 2022 settled up $4.13 @ $95.72/bbl. trading in a $4.67 range including the overnight-RBOB settled up 6.97/cpg and Heating Oil settled up 16.39/cpg. Global crude oil prices jumped early Sunday evening after U.S. and Western allies imposed sanctions on specific Russian banks, prompting fears that energy supplies will be affected. On Saturday, the U.S., European allies and Canada said they would disconnect specific Russian banks from SWIFT. “This will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally,” a joint statement announcing the retaliatory measure said. According to market advisors, “The various banking sanctions make it highly difficult for Russian petroleum sales to occur now, most banks will not provide basic financing, due to the risk of running afoul of sanctions.” Putin could also decide to retaliate against the U.S. and allies’ action by weaponizing energy and turning off the taps directly.

Natural Gas Futures for April 2022 settled down $.068 @ $4.402/mmbtu trading in a 0.317 cent range including the overnight session. German utility giant E.ON rejected calls from Poland to shut down the Nord Stream 1 natural gas pipeline in response to Russia’s invasion of Ukraine, the Rheinische Post newspaper reported. Polish Prime Minister Mateusz Morawiecki on Saturday asked operators of the offshore pipeline-which carries more than a third of Germany’s natural gas imports-to shut it down after Moscow ordered troops into Ukraine, the publication reported. E.ON, which owns 15.5% of Nord Stream 1 operator Nord Stream AG, told the Rheinische Post that the project was completely separate to Nord Stream 2. Russian state-controlled energy firm Gazprom is the majority owner of both Nord Stream 1 and 2.


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