Coquest

Your Daily Energy Report for March 6, 2025

Posted on 2025-03-06

Crude Oil

Crude Oil futures for April settled up $.05 or .075% at $66.36. Oil prices stayed mostly steady on Thursday, rebounding slightly from yesterday's low. Market movements were influenced by trade tensions as the U.S. imposed tariffs on Canadian and Mexican goods, including energy imports. Meanwhile, OPEC+ announced plans to ramp up production, marking their first increase since 2022. Additionally, there were discussions in the U.S. regarding potential tariff exemptions for automakers and the elimination of tariffs on Canadian energy imports. U.S. crude inventories saw a higher-than-expected rise due to seasonal refinery maintenance, while gasoline and distillate stocks declined amid increased exports, as reported by the Energy Information Administration.
 

Natural Gas

Natural Gas futures for April settled down -$.10 or -3.326% at $4.302. Natural gas prices fell today, following reports indicating a smaller-than-expected reduction in storage levels. Data showed that utilities withdrew 80 billion cubic feet of gas for the week ending February 28, missing projections of 96 bcf and bringing total stockpiles to 1,760 bcf. Despite record-high production of 104.7 bcfd last month, storage remains significantly below both last year’s levels and the five-year average. LNG exports climbed to an all-time high of 15.6 bcfd, supported by expanded capacity at Venture Global’s Plaquemines facility. Meanwhile, expectations of milder weather through mid-March could lead to reduced heating demand. Recent declines in Canadian exports have provided some support to U.S. natural gas markets, but if the U.S. and Canada reach an agreement to ease or remove tariffs, additional downward pressure on prices may emerge.

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