Coquest

Your Daily Energy Report for February 19, 2025

Posted on 2025-02-19

Crude Oil

Crude Oil futures for March settled up $.40 or .557% at $72.25. Oil prices rose today, marking a third consecutive session of gains. This increase was driven by immediate supply concerns, including a drone incident at a Russian pumping station that disrupted Kazakh crude shipments to the Black Sea, potentially reducing transit volumes by 30%. Additionally, cold weather posed a threat to US oil production, with projections suggesting North Dakota's output could decrease by up to 150 thousand barrels per day. Despite these factors, the rise in oil prices was tempered by a slight reduction in geopolitical tensions, as diplomatic discussions between the US and Russia aimed to resolve the Ukraine conflict. Meanwhile, markets remained attentive to conflicting reports about whether OPEC+ would ease production cuts in April or extend them. In other developments, President Trump's statement on reviewing Chevron's Venezuela crude exports underscored ongoing tensions between the US and Venezuela.
 

Natural Gas

Natural Gas futures for March settled up $.273 or 6.813% at $4.28. Natural gas prices continued their climb today, driven by a blast of extreme cold that spiked heating demand and disrupted energy production. This marked the highest closing level since late 2022 and extended a winning streak to seven sessions, the longest in over two years. The rapid price surge pushed gas into overbought territory for the second straight session. Over the past week, futures have skyrocketed nearly 30%, fueling gains for major U.S. gas producers. At the same time, the oil-to-gas price ratio dropped to its lowest point in over a year, reflecting natural gas's relative strength. So far this year, crude prices have averaged about 20 times those of gas, a decline from the 33-to-1 ratio seen last year. Current forecasts indicate colder-than-usual temperatures persisting through late February.

Continue reading the full Coquest Daily Report.

---