Coquest

Your Daily Energy Report for February 3, 2025

Posted on 2025-02-03

Crude Oil

Crude Oil futures for March settled up $.63 or .869% at $73.16. Oil prices adjusted downward following OPEC+'s reaffirmation of gradual output increases and their decision to exclude the EIA from their production monitoring sources. This move reflects previous tensions between OPEC+ and President Trump, who had pressured the group to increase output amidst US sanctions on Iran. Trump, since resuming office, has continued to advocate for higher oil production, citing concerns that elevated prices could benefit Russia's actions in Ukraine. Additionally, new tariffs imposed by Trump on Mexico, Canada, and China have unsettled markets, introducing uncertainties into global trade and energy supply chains. These tariffs encompass a 25% duty on most imports from Mexico and Canada, and a 10% tariff on energy imports from Canada and various Chinese goods. Canada and Mexico are significant suppliers of crude to the US, constituting roughly a quarter of refined oil products such as gasoline and heating oil.
 

Natural Gas

Natural Gas futures for March settled up $.308 or 10.118% at $3.352. Natural gas prices surged on Monday, rebounding from an 11.8% decline the prior week. The spike followed President Trump’s Saturday announcement of new tariffs on oil imports from Canada and Mexico, sparking concerns over potential supply disruptions. Analysts at Goldman Sachs suggest these measures could cut Canadian natural gas exports to the US by about 0.16 billion cubic feet per day. Meanwhile, Trump has been urging the European Union to increase purchases of American liquefied natural gas (LNG), though short-term supply remains limited due to full export capacity. In addition, the Energy Information Administration reported a substantial natural gas withdrawal of 321 billion cubic feet amid extreme cold, surpassing both the previous year’s levels and the five-year average.

Continue reading the full Coquest Daily Report.

---