Coquest

Your Daily Energy Report for February 28, 2025

Posted on 2025-02-28

Crude Oil

Crude Oil futures for April settled down -$.59 or -.839% at $69.76. Oil prices fell on Friday, marking their largest monthly decline since September. Concerns about the US economy and broader market uncertainties dampened the outlook for energy demand. Additionally, hopes for progress on a peace deal in Ukraine added pressure, potentially easing Russian sanctions and boosting oil exports. Markets also reacted cautiously to increased tariffs on China by the Trump administration, the largest importer of crude oil globally. Despite these factors, supply risks reemerged, which helped mitigate further price declines. Moreover, President Trump's actions, including revoking Chevron's Venezuela license and imposing fresh sanctions on Iran, alongside maintained tariffs on Mexico and Canada with a new levy on Canadian energy imports effective March 4, could tighten global supply.
 

Natural Gas

Natural Gas futures for March settled down -$.10 or -2.542% at $3.834. Natural gas prices dipped today, reaching their lowest level in two weeks as expectations of warmer temperatures and robust output offset steady LNG exports and limited storage. Forecasts indicate milder weather through mid-March, curbing the need for natural gas in heating. At the same time, February production has remained near historic highs, climbing back to 105.2 bcfd by the end of the month after briefly dropping to 100.5 bcfd due to frozen wells earlier in February. On the export side, LNG shipments have stayed elevated, averaging 15.6 bcfd for the month, up from 14.6 bcfd in January, with increased flows to Venture Global's Plaquemines facility, which set a new record at 1.8 bcfd. Despite these factors, gas inventories remain 11.5% below the five-year average following substantial withdrawals.

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