Coquest Daily Energy Report

Crude Oil Futures for May 2022 settled down $7.94 @ $105.96/bbl. trading in a $8.56 range including the overnight-RBOB settled down 25.12/cpg and Heating Oil settled down 33.12/cpg. Global crude oil prices declined more than $6.00 per barrel early Monday on fears over weaker fuel demand in China grew after financial hub Shanghai lockdown efforts to curb a surge in COVID-19 infections. Shanghai has entered a two-stage lockdown of 26 million people on Monday in an attempt to curb the further spread of the virus. Oil demand in China, the largest crude importer globally, is expected to be as much as 800,000 barrels per day lower in April compared with “normal” levels as a result, said a leading banking analyst. Current expectations are that 2.5 mil/bpd. of Russian crude and products will be lost in April.

Natural Gas Futures for April 2022 settled down $.063 @ $5.508/mmbtu trading in a 0.233 cent range including the overnight session. President Biden and European Commission President Ursula von der Leyen announced the formation of a joint task force to bolster energy security for Ukraine and the EU for next winter and the following one. The primary goals of the task force, the U.S. and EU said in a joint statement, would be to diversify LNG supplies in alignment with climate objectives and reduce demand for natural gas. The U.S. said Friday it will work with international partners to provide at least 15 billion cubic meters more of liquified natural gas to Europe this year. These additional volumes of LNG are expected to increase going forward, the White House said in a statement.


To sign up and receive the full Coquest Daily Energy Report, click here.

To send a question to the author, or to learn more about this topic, click here.

For assistance with brokerage or hedging services, please click here.


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.