Coquest

Your Daily Energy Report for February 7, 2025

Posted on 2025-02-07

Crude Oil

Crude Oil futures for March settled up $.39 or .552% at $71.00. Oil prices rose on Friday, buoyed by new sanctions impacting Iran's crude exports. However, the market faced constraints from escalating trade tensions between the US and China, along with the prospect of additional tariffs on other countries. Despite these gains, the benchmark marked its third consecutive weekly decline, primarily driven by heightened trade tensions following President Trump's recent tariff announcements targeting China and other nations. Analysts voiced concerns that these trade disputes could stifle global economic growth, potentially reducing oil demand. Moreover, a notable increase in US crude inventories, as reported by the Energy Information Administration, indicated weaker domestic demand, adding further downward pressure on oil prices throughout the week.
 

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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