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.
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