Coquest

Your Daily Energy Report for February 18, 2025

Posted on 2025-02-17

Crude Oil

Crude Oil futures for March settled up $1.10 or 1.569% at $71.85. Oil prices gained on Tuesday, buoyed by ongoing diplomatic negotiations between the US and Russia aimed at resolving the Ukraine conflict. The talks sparked optimism about easing geopolitical tensions. While prospects for peace in Ukraine improved following the US-Russia dialogue, officials cautioned that lasting peace would require more than a single meeting. Elsewhere, crude exports from Kazakhstan faced disruptions after a drone strike targeted a Russian pumping station, potentially reducing pipeline flows by 30%. In supply developments, OPEC+ is said to be contemplating a delay in its scheduled production increases for April, marking the fourth deferment since 2022. Russian Deputy Prime Minister Alexander Novak, however, denied any formal discussions on this topic. Ina potential boost for oil prices, U.S. inventories and trade data due on Thursday could show lower net-imports for crude oil last week.
 

Natural Gas

Natural Gas futures for March settled up $.282 or 7.57% at $4.007. Natural gas prices had a big jump on Tuesday, nearing a four-week peak and recovering from previous declines. The surge came as intense cold in some regions led to freeze-offs, temporarily halting oil and gas wells and cutting daily production to its lowest level in three weeks. At the same time, demand remains strong due to record-high natural gas deliveries to LNG export facilities. Weather forecasts from both US and European models indicate an extended period of extreme cold from Monday through Saturday, with Arctic air driving temperatures into the negative 10s and 20s, even reaching parts of Texas and the southern states.

Continue reading the full Coquest Daily Report.

---