Coquest

Your Daily Energy Report for February 4, 2025

Posted on 2025-02-04

Crude Oil

Crude Oil futures for March settled down -$.46 or -.629% at $72.70. Oil prices declined today as concerns grew over an escalating trade conflict between the U.S. and China, raising worries about global economic growth and potential inflationary effects. The U.S. administration is preparing to intensify pressure on Iran, with plans to completely halt its oil exports and curb its regional influence through fresh sanctions and stricter enforcement measures. Earlier in the session, crude prices dropped as tensions between Washington and Beijing worsened. In response to U.S. tariffs, China imposed duties on American coal, LNG, and crude oil, amplifying fears of weakening global demand. At the same time, OPEC+ reaffirmed its strategy to gradually boost oil production starting in April. Market participants are also focused on upcoming U.S. oil inventory data, with projections indicating a build in crude stockpiles alongside declines in gasoline and distillate supplies.
 

Natural Gas

Natural Gas futures for March settled down -$.099 or -2.953% at $3.253. Natural gas prices tumbled on Tuesday, reversing a sharp 10.1% surge from the previous session. The decline followed President Trump's decision to extend tariff deadlines on Canada and Mexico by one month after securing border enforcement agreements. At the same time, China introduced countermeasures, including a 15% tariff on U.S. coal and LNG, fueling concerns over trade disruptions between key global energy players. On the production front, average natural gas output in the Lower 48 states climbed to 105.7 bcfd in early February, surpassing January’s 102.5 bcfd. However, daily output has eased to 105.4 bcfd after hitting an 11-month peak of 106.1 bcfd. Looking ahead, forecasts indicate warmer-than-average temperatures through February 8, followed by a shift to colder conditions.

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