Coquest

Your Daily Energy Report for January 13, 2025

Posted on 2025-01-13

Crude Oil

Crude Oil futures for February settled up $2.25 or 2.938% at $78.82. Oil prices gained on Monday, marking their highest point in over four months. This increase followed sweeping US sanctions on Russia's energy sector, which have raised fears of supply interruptions. The sanctions, targeting major exporters, insurers, and over 150 tankers, have left key buyers like India and China scrambling to adjust. Reports indicate disruptions, with Chinese refiners holding urgent discussions and Indian refiners bracing for extended challenges. Tankers affected by sanctions are reportedly stranded near China, with analysts suggesting up to 800,000 barrels per day of Russian oil could be impacted, though actual losses may vary. Contributing to the price surge are declining US oil inventories, colder weather, and speculation that the Trump administration might impose stricter sanctions on Iran.
 

Natural Gas

Natural Gas futures for February settled down -$.055 or -1.379% at $3.934. Natural gas prices dropped on Monday following an earlier surge of nearly 10%. The rise was influenced by reduced freeze-offs and lower gas flows to the Freeport LNG export facility in Texas, where flows were nearing a one-month low, indicating softer demand. Even so, natural gas prices in the US remain at levels not seen in nearly two years. Forecasts suggest below-average temperatures across much of the country through late January, with colder weather anticipated in the weeks ahead. Meanwhile, record LNG exports to Europe and cold weather tighten U.S. gas supply, putting inventories under pressure. Analysts warn storage surplus of 3,373 Bcf could erode quickly with sustained cold and export activity.

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