Coquest Daily Energy Report
Crude Oil Futures for January 2022 settled down $3.77 @ $66.18/bbl trading in a $6.79 range including the overnight-RBOB settled down 9.29/cpg and Heating Oil settled down 8.79/cpg. OPEC and their working allies have postponed technical meetings to later this week, giving themselves more time to assess the impact of the new Omicron coronavirus variant on oil demand and prices, according to OPEC+ sources and documents. Oil prices plummeted together with other financial markets on Friday by more than -10.0%, their largest one-day drop since April 2020, as the new variant has scared investors and added to concerns that a supply surplus could swell even further in the first quarter of 2022. A joint ministerial monitoring committee will meet on Thursday instead of Tuesday, the documents showed, OPEC+ will also meet the same day, when a policy decision will likely be announced.
Natural Gas Futures for January 2022 settled down $0.287 @ $4.567/mmbtu trading in a .418 cent range including the overnight session. Since late summer, volatility for natural gas prices has stayed well above the average over the past decade- even after a drop from last month’s peak-as traders try to gauge whether winter cold will strain current inventories. A late Autumn cold in Europe and Asia has sparked fears that gas shortages will worsen globally, as nations struggle to quickly refill stockpiles. But so far, there’s little sign of a similar situation developing in the U.S., even as shale producers keep a lid on output and the country’s exports of liquefied natural gas surged to a record. Currently, domestic gas stockpiles are -8.1% or -320 bcf below normal for the time of year.
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