Coquest Daily Energy Report
Crude Oil Futures for May 2022 settled down $1.32 @ $101.96/bbl trading in a $4.91 range including the overnight-RBOB settled down 3.32/cpg and Heating Oil settled down 7.79/cpg. Saudi Arabia raised oil prices for customers in all regions as Russia’s invasion of Ukraine continues to reverberate through markets. State producer Saudi Aramco increased its Arab Light crude for next month’s delivery to Asia to $9.35 per barrel above the benchmark price. That’s an increase of $4.40 per barrel from April when the key grade was already at an all time record. The Saudi hike is likely to set the tone for other Middle Eastern producers such as Iraq and Kuwait. Aramco raised other Asian grades by at least $2.70 per barrel, while all U.S. prices were increased by $2.20/bbl.. U.S. Arab light will jump to a premium of $5.65 a barrel, also a record.
Natural Gas Futures for April 2022 settled up $0.320 @ $6.032/mmbtu trading in a .374 cent range including the overnight session. Germany’s government is again under fire from its Western European and U.S. allies for hesitating to cut business ties with Russia. Chancellor Olaf Scholz and his government maintained Germany will continue to buy billions of dollars’ worth of natural gas and oil from Russia each week for the foreseeable future to keep German car companies and factories operating at full throttle. “We are pursuing a strategy that will make us independent of Russian gas, coal and oil, but just not right away,” Robert Habeck, Germany’s economy and energy minister, said Sunday, “an immediate embargo of Russian natural gas would be the wrong way to go.”
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