Coquest Daily Energy Report

Crude Oil Futures for May 2022 settled down $5.65 @ $102.56/bbl trading in a $6.82 range including the overnight-RBOB settled down 13.07/cpg and Heating Oil settled down 2.89/cpg. Brent crude oil spot price averaged $117.00/ per barrel in March, a $20.00/bbl. increase from February. Crude oil prices increased following the invasion of Ukraine by Russia. Sanctions on Russia and other actions contributed to falling oil production in Russia and created significant market uncertainties about the potential for further oil supply disruptions. Global oil inventory draws averaged -1.7 million barrels per day from the third quarter of 2020 through the end of calendar 2021. The Energy Information Administration currently estimates that commercial oil inventories in the OECD ended Q1/22 at 2.61 billion barrels, up slightly from February, which was the lowest level since April 2014.

Natural Gas Futures for May 2022 settled down $0.644 @ $7.176/mmbtu trading in a .985 cent range including the overnight session. For the month of March, the Henry Hub natural gas spot price averaged $4.900/ per million British thermal units, which was up from the February average of $4.690/mmbtu., as inventory withdrawals slightly outpaced the five-year (2017–2021) average. The Energy Information Administration currently expects liquefied natural gas exports will increase from March levels, contributing to a Henry Hub price of $5.950/mmbtu. for April. We expect the Henry Hub price will average $5.680/mmbtu. in Q2/22 and $5.230/mmbtu. for all of calendar 2022.


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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.