Coquest

Your Daily Energy Report for January 31, 2025

Posted on 2025-01-31

Crude Oil

Crude Oil futures for March settled down -$.20 or -.275% at $72.53. Oil prices edged lower on Friday, setting up for a weekly decline as traders monitored the possibility of U.S. tariffs on key crude suppliers, Canada and Mexico. In 2023, Canada shipped 3.9 million bpd to the U.S., while Mexico supplied 733,000 bpd, according to government data. Trump suggested that his final decision would hinge on market dynamics and trade negotiations, stating, “We may or may not [include oil].” Analysts believe exempting crude could stabilize prices, whereas broad tariffs might drive up costs and support U.S. crude prices. Meanwhile, traders are also focused on the upcoming OPEC+ meeting on February 3, where production policy will be reviewed. Kazakhstan’s energy minister noted that OPEC+ will evaluate Trump’s calls for increased U.S. output and may reassess voluntary production cuts.
 

Natural Gas

Natural Gas futures for March settled down -$.003 or -.098% at $3.044. Natural gas prices extended their losses today, approaching a three-week low, as forecasts pointed to unexpectedly mild temperatures in early February. Weekend weather models indicated that from February 1-5, much of the US would experience above-average temperatures, lowering anticipated heating demand. While colder conditions in the Midwest and Northeast are expected to support moderate demand this week, most areas are projected to remain warmer than usual over the next two weeks. Analysts predict a 317 bcf gas withdrawal for the week ending January 24, potentially eliminating the inventory surplus for the first time since early 2022. At the same time, LNG exports are rising, supported by the resumed operations of Freeport LNG’s Texas plant.

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