Coquest Daily Energy Report
Crude Oil Futures for April 2022 settled up $7.69 @ $103.41/bbl trading in a $11.46 range including the overnight-RBOB settled up 15.62 cpg and Heating Oil settled up 21.98 cpg. According to Energy Information Administration data, Brent crude oil spot prices averaged $87.00 per barrel in January 2022, a +$12.00/bbl. increase from December 2021. Crude oil prices have risen steadily since mid-2020 as result of consistent draws on global oil inventories, which averaged 1.8 million barrels per day from the third quarter of 2020 through the end of 2021. The EIA estimates that global oil inventories fell further in January-compared with our expectation of an increase in last month’s STEO and that commercial inventories in the OECD ended the month at 2.68 billion barrels, which is the lowest level since mid-2014.
Natural Gas Futures for April 2022 settled up $0.171 @ $4.573/mmbtu trading in a .287 cent range including the overnight session. For January, the natural gas spot price at Henry Hub averaged $4.380 per million British thermal units, up from the December average of $3.760/mmbtu. Higher prices in January were a result of colder-than-normal weather in parts of the country, particularly the Northeast and the Midwest where demand increased for natural gas used for heating and for power generation. Temperatures have continued to be cold in parts of the country in early February, which we expect will contribute to Henry Hub prices averaging $4.700/mmbtu for the month. The winter weather forecasts are highly variable and create a significant amount of uncertainty in our price forecast.
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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.
