Coquest Daily Energy Report

Crude Oil Futures for April 2022 settled down $2.68 @ $106.02/bbl trading in a $9.14 range including the overnight-RBOB settled down 13.71/cpg and Heating Oil settled down 16.81/cpg. According to Energy Information Administration data, Brent crude oil spot prices averaged $97.00 per barrel in February, an +$11.00/bbl. increase from January. Daily spot prices for Brent closed at almost $124.00/bbl. in the first week of March as the further invasion of Ukraine by Russia and subsequent sanctions on Russia and other actions created significant market uncertainties about the potential for oil supply disruptions. These events are occurring against a backdrop of low oil inventories and persistent upward oil price pressures.

Natural Gas Futures for April 2022 settled up $0.105 @ $4.631/mmbtu trading in a .172 cent range including the overnight session. For the month of February, the Henry Hub natural gas spot price averaged $4.690 per million British thermal units, which was up from the January average of $4.380/mmbtu. Although temperatures across the eastern part of the United States were closer to normal in February-reducing natural gas consumption from January levels-natural gas production fell slightly last month relative to January production, in part as a result of temporary freeze-offs in producing regions. The drop in production partly contributed to inventory draws outpacing the five-year (2017–2021) average for February. This mornings weekly Energy Information Administration natural gas storage data showed a draw of -124 billion cubic feet for the week.


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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.