Coquest

Your Daily Energy Report for March 3, 2025

Posted on 2025-03-03

Crude Oil

Crude Oil futures for April settled down -$1.39 or -1.993% at $68.37. Oil prices dropped on Monday, reaching their lowest point since early December. The decline followed reports that OPEC+ plans to proceed with a scheduled production hike in April, raising concerns about increased global supply. Additionally, market sentiment was weighed down by worries that upcoming US trade measures targeting Canada and Mexico could slow economic activity and reduce oil demand. Further uncertainty stems from an impending 10% tariff on Chinese imports set to take effect alongside these measures. Meanwhile, geopolitical factors, including potential negotiations between Russia and Ukraine after a tense exchange involving Ukrainian President Zelenskyy and former US President Trump, have also played a role in shaping market movements.
 

Natural Gas

Natural Gas futures for April settled up $.288 or 7.512% at $4.122. Natural gas prices edged up today, rebounding from a recent low of $3.834 on February 28. This increase was driven by robust LNG export volumes, which set a new record in February at 15.6 billion cubic feet per day (bcfd) due to expanded capacity at Venture Global’s Plaquemines facility. Despite forecasts indicating milder weather through mid-March, demand for natural gas in the contiguous United States is expected to remain strong, albeit slightly lower week-over-week. Current stockpiles are running approximately 12% below the five-year average, a result of earlier cold weather extremes, while February saw a peak in natural gas production at 104.7 bcfd. Weather forecasts remain a key bearish factor, Maxar Technologies projects above-normal temperatures from March 10-14 across the Rockies to the Atlantic, limiting heating demand.

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