Coquest

Your Daily Energy Report for March 4, 2025

Posted on 2025-03-04

Crude Oil

Crude Oil futures for April settled down -$.11 or -.161% at $68.26. Oil prices continued their fall on Tuesday, marking a near three-month low as markets reacted to OPEC+ moving forward with its planned production increase in April. The alliance, which includes OPEC members and partners like Russia, is set to boost output by 138,000 barrels per day, marking its first increase since 2022. Meanwhile, President Trump’s decision to suspend military aid to Ukraine amid tensions with President Zelenskyy fueled speculation about a potential de-escalation of the conflict, which could lead to reduced sanctions on Russia and a greater global oil supply. At the same time, new U.S. trade measures took effect, including a 25% tariff on imports from Canada and Mexico, a 10% levy on Canadian energy, and an increase in duties on Chinese goods from 10% to 20%. Analysts warned these policies could slow economic growth and weaken energy demand, adding downward pressure on oil prices. However, oil prices later stabilized as initial concerns over the trade tensions eased.
 

Natural Gas

Gas futures for April settled up $.228 or 5.531% at $4.35. Natural gas prices surged today, reaching their highest level since late 2022—fueled by record-breaking LNG exports and stronger demand projections. Shipments of liquefied natural gas picked up in early March, following a record 15.6 bcfd in February, supported by new capacity at Venture Global’s Plaquemines facility. Despite forecasts for milder weather through mid-March, gas consumption in the Lower 48 states is now expected to exceed earlier estimates. Additionally, storage levels remain roughly 12% below the five-year norm due to prior extreme cold spells, even as gas production set a fresh record of 104.7 bcfd last month.

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