Coquest

Your Daily Energy Report for February 26, 2025

Posted on 2025-02-26

Crude Oil

Crude Oil futures for April settled down -$.31 or -.450% at $68.62. Oil prices continued to fall on Wednesday, approaching their lowest point since December 10. This decline was driven by increasing worries about supply and a dimmer outlook for demand. Market sentiment was influenced by optimism surrounding a potential peace agreement between Russia and Ukraine, which could lead to lifted sanctions and potentially higher global oil supply. Additionally, a draft minerals deal between the US and Ukraine marked a significant development in President Trump's efforts to expedite the conflict resolution. Concerns also mounted over the potential economic slowdown due to Trump's tariffs on China and other trade partners, which could impact future energy demand. On the inventory front, contrary to expectations of an increase, US crude inventories actually decreased by 2.33 million barrels last week according to EIA data.
 

Natural Gas

Natural Gas futures for March settled down -$.268 or -6.421% at $3.906. Natural gas prices slipped today as expectations of warmer temperatures and robust production levels overshadowed strong LNG exports and limited storage capacity. Forecasts indicate milder weather through mid-March, reducing the need for heating in residential and commercial spaces. Additionally, February’s output has stayed near all-time highs, climbing back to 104.3 bcfd by February 25 after dipping to 100.5 bcfd on February 19 due to well freeze-offs. At the same time, LNG shipments have remained elevated, averaging 15.6 bcfd in February—an increase from 14.6 bcfd in January—bolstered by record daily flows of 16.4 bcfd, partially attributed to higher volumes moving to Venture Global’s Plaquemines facility. Despite strong exports, natural gas reserves are still 11% below the five-year norm.

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