Coquest

Your Daily Energy Report for January 10, 2025

Posted on 2025-01-10

Crude Oil

Crude Oil futures for February settled up $2.65 or 3.585% at $76.57. Oil prices climbed on Friday, marking the highest level since October, amid news of the U.S. Treasury preparing to implement strict sanctions on Russian oil. These measures are expected to impact 180 ships, major Russian oil companies, leading executives, and maritime insurers, potentially causing significant disruptions for key buyers like India and China. The sanctions are reported to include Gazprom Neft, Surgutneftegaz, and insurance providers responsible for covering most vessels transporting Russian oil to India. Introduced just before Donald Trump's presidential inauguration, the timing suggests the new administration may retain these measures as leverage in negotiations related to Ukraine. Meanwhile, forecasts predict below-average temperatures across central and eastern U.S., with parts of Europe also experiencing an unusually cold start to the year.
 

Natural Gas

Natural Gas futures for February settled up $.288 or 7.782% at $3.989. Natural gas prices experienced a big surge on Friday, as forecasts predicted colder weather and higher heating demand in the coming weeks. Meteorologists anticipate below-average temperatures across much of the US through January 25, with the chilliest days still ahead. Liquefied natural gas (LNG) exports reached record highs, with feedgas flows rising to 15.5 billion cubic feet per day, driven in part by increased activity at the new Plaquemines LNG facility in Texas. At the same time, production appeared to stabilize as freeze-offs, which limit output during cold spells, started to subside. Over the week, natural gas prices gained more than 17%, bouncing back after recent declines.

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