Coquest Daily Energy Report

Crude Oil Futures for May 2022 settled down $3.97 @ $94.29/bbl. trading in a $5.59 range including the overnight-RBOB settled down 12.85/cpg and Heating Oil settled down 4.99/cpg. Global crude oil prices dropped in excess of $5.00/bbl. early Monday morning with Brent crude tumbling below $100.00/bbl. on the heels of plans to release record volumes of crude and oil products from strategic stocks and on continuing Coronavirus lockdowns in China. According to leading market advisors, “the release of strategic government oil reserves should ease some market tightness over the coming months, reducing the need for oil prices to rise to trigger near-term demand destruction,”. The release of Strategic Petroleum Reserve volumes equals 1.3 million barrels per day over the next six months and is enough to offset a shortfall of 1 mil/bpd of Russian oil supply.

Natural Gas Futures for May 2022 settled up $.365 @ $6.643/mmbtu trading in a 0.432 cent range including the overnight session. Natural gas trading is seeing a renaissance in the United States with the return of its inherent price volatility and while market turmoil in Europe could keep gas demand and export prices high for years, according to leading market advisors and participants. Sharp natural gas price swings that can bring huge profits to traders have resurfaced due to severe weather events and the European Union’s search for alternatives to Russian gas imports. Prices at the main U.S. gas trading hub are up +64.0% this year, flirting their highest level since 2014.


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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.