Coquest

Your Daily Energy Report for February 24, 2025

Posted on 2025-02-24

Crude Oil

Crude Oil futures for April settled up $.30 or .426% at $70.70. Oil prices rose on Monday, rebounding slightly from a 2.9% decline on Friday. Despite trading near yearly lows, market attention was on Ukraine peace negotiations and the potential restart of crude exports from northern Iraq. EU leaders plan to convene an emergency summit on March 6 to discuss additional aid for Ukraine, amid signals from Ukrainian President Zelenskiy that he would consider stepping down to facilitate peace. Meanwhile, US President Trump initiated direct talks with Russia, excluding Ukraine and the EU, with ongoing discussions anticipated this week. Any resolution to the conflict may not immediately increase Russian oil supply due to OPEC+ production constraints, though it could exert downward pressure on prices. Additionally, Iraq aims to add 185,000 barrels per day through the Iraq-Turkey pipeline once operations resume.
 

Natural Gas

Natural Gas futures for March settled down -$.24 or -5.668% at $3.994. Natural gas prices experienced a big drop on Monday, pulling back from last week's 25-month peak. The decline comes as forecasts indicate milder temperatures and production levels show signs of stabilization, easing earlier supply concerns. The impact of freeze-offs, which limit output during extreme cold, is beginning to fade, allowing production to recover. In contrast, prices had spiked nearly 14% last week due to an Arctic blast that boosted heating demand while freezing oil and gas wells, constraining supply. Last week’s data indicated tight supply conditions, with the EIA reporting a storage draw of 196 Bcf, exceeding expectations. Meanwhile, LNG export plant gas flows remain robust, averaging a record 15.5 bcfd in February, an increase from 14.6 bcfd in January.

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