Coquest

Your Daily Energy Report for January 21, 2025

Posted on 2025-01-21

Crude Oil

Crude Oil futures for February settled down -$1.99 or -2.555% at $75.89. Oil prices dropped on Tuesday amid market reactions to a series of executive orders from newly inaugurated U.S. President Donald Trump. These included plans for a 25% tariff on imports from Canada and Mexico starting February 1, impacting investor expectations for potential delays. Specific tariffs on China, the world's largest oil importer, were not immediately unveiled, keeping markets uncertain. Traders also awaited details on sanctions affecting major oil-exporting nations like Russia, Iran, and Venezuela. On Monday, crude prices fell over 1% following Trump's announcement of initiatives to increase U.S. oil and gas production under a national emergency declaration. Reduced geopolitical tensions contributed to price stabilization after Israel and Hamas reached a ceasefire and hostage release agreement.
 

Natural Gas

Natural Gas futures for February settled down -$.192 or -4.863% at $3.756. Natural gas prices closed lower as traders shifted focus from Houston’s snow-covered landscape to projections of warmer weather in early February. Despite an Arctic cold front bringing frigid temperatures as far south as northern Florida, the immediate impact on the market was downplayed. On Monday, President Donald Trump directed the resumption of export permit processing for new LNG facilities, aiming to boost U.S. energy production and roll back previous climate-related regulations. Data from the EIA highlighted strong heating demand, with a reported storage draw of 258 Bcf, nearly double the five-year average. While this indicates short-term demand strength, domestic gas storage remains 77 Bcf above seasonal norms, easing supply concerns.

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