Coquest Daily Energy Report

Crude Oil Futures for April 2022 settled up $4.30 @ $123.70/bbl trading in a $12.37 range including the overnight-RBOB settled up 11.05/cpg and Heating Oil settled up 51.58/cpg. Russia has threatened to close a major gas pipeline to Germany and warned of $300 oil prices if the West goes ahead with a ban on its energy exports. “It is absolutely clear that a rejection of Russian oil would lead to catastrophic consequences for the global market,” Deputy Prime Minister Alexander Novak said Monday in an address on state television. “The surge in prices would be unpredictable. It would be $300 per barrel if not more”. Novak also cited Germany’s decision last month to halt the certification of Nord Stream 2 gas pipeline, saying: “We have every right to take a matching decision and impose an embargo on gas pumping through the Nord Stream 1 gas pipeline”. “So far, we are not taking such a decision,” Novak said.

.Natural Gas Futures for April 2022 settled down $0.306 @ $4.527/mmbtu trading in a .375 cent range including the overnight session. Colder-than-average temperatures in January resulted in U.S. natural gas inventories falling below the five-year average-to end the month at 2.3 trillion cubic feet. The Energy Information Admistration expects natural gas inventories to fall by about 730 bcf. for the rest of the withdrawal season, ending March just below 1.6 tcf, which would be -8.0% less than the five-year average for the time of year. Expectations are that U.S. consumption of natural gas will average 105.2 bcf. in February, down -3.0% from February 2021. Consumption in the forecast declines the most in the residential and commercial sectors, where consumption will average a combined 43.8 Bcf/d, down-10.0% from last February.


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