Coquest Daily Energy Report
Crude Oil Futures for May 2022 settled down $0.20 @ $96.03/bbl. trading in a $5.01 range including the overnight-RBOB settled down 0.64/cpg and Heating Oil settled down 7.74/cpg. Australia, Britain, Canada and the United States have imposed outright bans on Russian oil purchases, but the European Union remains divided. The bloc’s 27 members have been unable to agree on an embargo, with Germany warning against hasty steps that could push the groups economy into recession. Germany however, aims to phase out Russian oil imports by the end of this year, officials said, as does Poland. Many buyers in Europe are shunning Russian crude voluntarily to avoid reputational damage or possible legal difficulties. China’s state refiners have been honoring existing Russian oil contracts, but avoiding new ones despite steep discounts.
Natural Gas Futures for May 2022 settled up $.330 @ $6.359/mmbtu trading in a 0.440 cent range including the overnight session. At least a dozen U.S. shale gas executives met on Wednesday with European energy officials to discuss expanding U.S. fuel supplies to Europe. The group met in Houston with foreign affairs and economic ministers and commercial buyers all looking to reduce their imports of Russian oil, coal and liquefied natural gas over its invasion of Ukraine. The European Union plans to cut its reliance on Russian gas by two-thirds this year. One executive noted, “The situation in Europe is so precarious. All these countries that are dependent on Russian gas are committed to giving it up, in some cases completely.”
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