Coquest

Your Daily Energy Report for January 16, 2025

Posted on 2025-01-16

Crude Oil

Crude Oil futures for February settled down -$1.36 or -1.699% at $78.68. Oil prices slipped on Thursday, retreating from a recent five-month peak, as markets adjusted to fresh US measures targeting Russian oil exports. There is speculation that the incoming administration may ease these restrictions. Nations like India and China are already securing additional crude from Saudi Arabia to offset potential disruptions. Meanwhile, significant volumes of oil remain anchored off China’s coast as traders navigate the new regulations. In the US, reports suggest the president-elect’s team is devising a sanctions policy that might favor Russian oil companies while supporting diplomatic initiatives in Ukraine. With the upcoming inauguration, market participants are bracing for possible shifts, including tariffs on Canadian crude and initiatives to expand domestic energy production.
 

Natural Gas

Natural Gas futures for February settled up $.175 or 4.286% at $4.258. Natural gas prices rebounded on Thursday, marking their highest level in two years. This surge was fueled by forecasts of extreme cold weather expected to drive record heating demand and an energy report confirming a significant reduction in gas storage. Government data revealed a withdrawal of 258 bcf of natural gas from storage for the week ending January 10, far surpassing the 150 bcf draw from the same period last year and the five-year average of 128 bcf. Experts anticipate that upcoming reports for the weeks ending January 17 and 24 will reflect even larger storage declines, exceeding 200 bcf, as colder weather boosts energy needs. Predictions of below-average temperatures during the Martin Luther King Jr. Day weekend could also impact production and pipeline operations.

Continue reading the full Coquest Daily Report.

---