Coquest Daily Energy Report
Crude Oil Futures for April 2022 settled down $6.32 @ $103.01/bbl. trading in a $9.96 range including the overnight-RBOB settled down 14.32/cpg and Heating Oil settled down 14.13/cpg. Alexander Novak, Russia’s deputy prime minister, says his government has the “full right” to “impose an embargo” on gas supplies by halting gas supplies through the Nord Stream 1 pipeline with U.S. and European officials mulling a ban on Russian oil and gas imports. Novak says it would take Europe more than a year to replace the volume of oil it receives from Russia. Market advisors note that, Russia will soon be forced to start shutting-in oil production as it will be unable to sell all the oil displaced from European markets in other regions.
Natural Gas Futures for April 2022 settled down $.067 @ $4.658/mmbtu trading in a 0.253 cent range including the overnight session. European natural gas prices extended last week’s losses on signs that talks to stop the war in Ukraine may advance, easing tensions over potential Russian supply curbs. According to market participants, any progress in peace talks will likely see more risk premium fall out of gas pricing. Benchmark Dutch front-month gas fell as much as -16.0%, while power prices in northwest Europe also decreased by more than -10.0%. Gas flows from Russia were at normal levels both via Ukraine and on other routes. Talks between Russia and Ukraine will take place via video link on Monday, with the focus on a more substantial ceasefire.
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