Coquest

Your Daily Energy Report for January 23, 2025

Posted on 2025-01-23

Crude Oil

Crude Oil futures for February settled down -$.82 or -1.087% at $74.62. Oil prices fell on Thursday amidst President Donald Trump's virtual address at the Davos forum. During his speech, Trump revealed intentions to urge Saudi Arabia and OPEC to decrease oil prices, underscoring his administration's energy goals. He highlighted early executive moves, such as declaring a national energy emergency to enhance US oil and gas production, withdrawing from the Paris climate accord, and terminating what he labeled as the “green new scam”. Trump has prioritized energy development to alleviate consumer expenses. Concurrently, the latest EIA figures indicated a decline of over 1 million barrels in US crude inventories last week, alongside an increase in fuel reserves, roughly aligning with market forecasts. Moreover, a substantial volume of Canadian oil is en route to the US in anticipation of potential tariffs.
 

Natural Gas

Natural Gas futures for February settled down -$.015 or -.379% at $3.945. Natural gas prices dropped today, after a sizable storage draw that fell short of expectations. According to the latest EIA data, US utilities withdrew 223 billion cubic feet (bcf) of natural gas in the week ending January 17, leaving total inventories at 2,892 bcf, below the forecasted 244 bcf draw. Analysts anticipate withdrawals exceeding 200 bcf for the following week, spurred by increased heating demand, which may erase the slight surplus in storage compared to the five-year average. However, demand is projected to decline as milder temperatures are expected from late January into early February. Additionally, natural gas flows to the Freeport LNG export facility are set to recover from an 11-week low after operations were disrupted by a power outage caused by a winter storm earlier in the week.

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