Coquest

Your Daily Energy Report for January 7, 2025

Posted on 2025-01-07

Crude Oil

Crude Oil futures for February settled up $.69 or .938% at $74.25. Oil prices climbed on Tuesday, rebounding from earlier declines and approaching their highest levels in nearly three months. The increase is attributed to mounting concerns over reduced oil exports from Russia and Iran due to intensifying Western sanctions. These supply worries have boosted demand for Middle Eastern oil, prompting Saudi Arabia to raise its February oil prices for Asia—the first price increase in three months. Meanwhile, a decision by Shandong Port Group to bar vessels carrying U.S.-sanctioned oil is expected to tighten supply in China. Shandong Port Group oversees large ports on China's east coast, including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil. Additionally, colder temperatures across the U.S. and Europe have driven up demand for heating oil.
 

Natural Gas

Natural Gas futures for February settled down -$.223 or -6.073% at $3.449. Natural gas prices fell on Tuesday, reversing a surge from the prior session. The decline reflects a balance between supply disruptions from winter storms and increasing production alongside robust LNG exports. Freezing temperatures in the eastern U.S. caused some wells and pipelines to halt, dropping daily gas output to a six-week low of 102.6 billion cubic feet on Monday. However, this reduction was less severe than in past years, with January's average production near record levels at 105 Bcf per day. At the same time, LNG export volumes rose to 15.1 Bcf per day this month, driven by strong global demand as Europe continues to adjust to reduced Russian gas supplies. Forecasts suggest colder-than-usual weather across the U.S. through January 21, with the most intense cold yet to come, potentially further affecting supply.

Continue reading the full Coquest Daily Report.

---