Coquest

Your Daily Energy Report for February 6, 2025

Posted on 2025-02-06

Crude Oil

Crude Oil futures for March settled down -$.42 or -.591% at $70.61. Oil prices dropped today following President Trump’s reaffirmation of his goal to reduce crude costs. During the National Prayer Breakfast, Trump stated that Interior Secretary Doug Burgum and Energy Secretary Chris Wright would take action to ramp up US oil production, aiming for a record-breaking increase to push prices lower. At the same time, Saudi Arabia’s state-run oil company significantly raised its March crude prices due to heightened demand from China and India, as well as supply disruptions in Russia stemming from US sanctions. On the trade front, tensions between the US and China persisted, with Beijing placing tariffs on American oil, LNG, and coal in response to Trump’s recent trade policies. However, given China’s relatively modest imports of US energy products, the overall impact of these measures is expected to be minimal.
 

Natural Gas

Natural Gas futures for March settled up $.048 or 1.429% at $3.408. Natural gas prices continued their gains today, driven by a steeper-than-anticipated drop in storage levels. Data from the EIA revealed a 174 billion cubic feet (bcf) withdrawal for the week ending January 31, exceeding market forecasts of 168 bcf. This decline was notably larger than the 110 bcf drop recorded during the same period last year and aligned with the five-year average. Further upward pressure came from increased LNG export activity, with shipments averaging 14.9 billion cubic feet per day (bcfd) in early February—an increase from 14.6 bcfd in January and surpassing the previous record set in December 2023 at 14.7 bcfd. Looking ahead, forecasts indicate that colder-than-usual temperatures between February 10-14 could drive up heating demand.

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