Coquest

Your Daily Energy Report for January 30, 2025

Posted on 2025-01-30

Crude Oil

Crude Oil futures for March settled up $.11 or .151% at $72.73. Oil prices rose slightly on Thursday, rebounding from a month-long low as sluggish U.S. economic growth weighed on the dollar and fueled speculation about potential Fed rate cuts in March. A weaker dollar boosted oil's appeal for foreign buyers. Meanwhile, investors analyzed Trump’s renewed tariff threats against Canada and Mexico, key crude suppliers to the U.S., with the White House reaffirming plans for 25% tariffs unless stricter measures are taken against fentanyl trafficking. In Mexico, Economy Minister Marcelo Ebrard stated that the country has a strategy prepared should Trump impose tariffs on February 1, though he did not disclose specifics. Additionally, market participants are closely watching the upcoming OPEC+ meeting on February 3, as Trump continues to push the group, particularly Saudi Arabia, to lower oil prices.
 

Natural Gas

Gas futures for March settled down -$.123 or -3.88% at $3.047.Natural gas prices fell today, hitting their lowest level since early December as forecasts indicated milder temperatures and reduced demand in the coming week. Meteorologists predict that most of the Lower 48 states will experience above-average temperatures through February 7, with conditions normalizing between February 8-14. Meanwhile, the EIA reported a significant storage withdrawal following last week’s severe cold snap. Utilities pulled 321 bcf of gas from storage for the week ending January 24—substantially higher than the 234 bcf draw during the same period last year and well above the five-year average of 189 bcf. This marked just the fourth instance of a weekly withdrawal exceeding 300 bcf, though it remained below the record 359 bcf draw from January 2018.

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