Coquest

Your Daily Energy Report for January 29, 2025

Posted on 2025-01-29

Crude Oil

Crude Oil futures for February settled down -$1.15 or -1.559% at $72.62. Oil prices dipped on Wednesday as traders evaluated the effects of potential U.S. tariffs on key suppliers, including Canada. Market sentiment was also influenced by a rise in crude inventories, which climbed by 3.463 million barrels after nine weeks of declines. The proposed 25% tariffs on Canadian and Mexican imports, set to take effect on February 1, added downward pressure, particularly impacting Canadian oil prices given the country's role as a major supplier to the U.S. Meanwhile, reduced concerns over supply disruptions from Libya and speculation surrounding future OPEC+ production decisions contributed to the overall market retreat. Saudi Aramco, the world’s top crude oil exporter, is expected to raise the price of its flagship Arab Light grade to Asia loading in March by up to $2.50 per barrel over the Oman and Dubai benchmarks, three refiners in the Reuters poll said.
 

Natural Gas

Natural Gas futures for February settled up $.064 or 1.844% at $3.535. Natural gas prices rose slightly on Wednesday, still at their lowest point since early December. This weeks decline was driven by forecasts of warmer weather expected in early February, which are likely to reduce heating demand. While the Midwest and Northeast are anticipated to experience colder temperatures this week, most other regions are forecasted to remain warmer than usual in the coming two weeks. Analysts are predicting a 317 billion cubic feet (bcf) gas withdrawal for the week ending January 24, potentially eliminating the surplus in gas inventory for the first time since early 2022. Additionally, LNG exports are on the rise, boosted by the reopening of Freeport LNG’s facility in Texas.

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