Coquest

Your Daily Energy Report for February 21, 2025

Posted on 2025-02-21

Crude Oil

Crude Oil futures for March settled down -$2.17 or -2.99% at $70.40. Oil prices experienced losses on Friday, marking a 0.5% decline over the week. Market sentiment was influenced by concerns over Russian supply disruptions, counterbalanced by uncertainty surrounding a possible Ukraine peace agreement. Supply worries escalated following reports of a 30-40% decrease in Caspian Pipeline Consortium oil flows due to a Ukrainian drone strike, although Kazakhstan achieved record-high production despite export challenges. At the same time, US crude inventories increased, while gasoline and distillate stockpiles declined amid refinery maintenance. Looking ahead, analysts anticipate that colder temperatures in the US and rising industrial demand in China will drive oil consumption in the near term.
 

Natural Gas

Natural Gas futures for March settled up $.082 or 1.975% at $4.234. Natural gas prices rose today, hitting a 25-month high as cold weather strained supply and boosted demand. Prices surged as an Arctic blast boosted heating demand while freezing oil and gas wells, disrupting production. Forecasts indicate colder-than-normal temperatures across the Lower 48 states through February 22, keeping consumption high. At the same time, output has dropped by 6.7 bcfd over the past 15 days to a four-week low of 100 bcfd on Thursday. Supply constraints worsened as gas flows to LNG export plants hit record levels, averaging 15.5 bcfd in February, up from 14.6 bcfd in January. Daily LNG feedgas set a new record of 16.4 bcfd on Wednesday, exceeding Tuesday’s 16.2 bcfd. Additionally, EIA data showed a larger-than-expected 196 bcf storage draw last week, much higher than the 100 bcf withdrawal in the prior period, further tightening supply.

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