Coquest

Your Daily Energy Report for March 10, 2025

Posted on 2025-03-10

Crude Oil

Crude Oil futures for April settled down -$1.01 or -1.507% at $66.03. Oil prices dropped on Monday, nearing a six-month low seen just last week. This decline came amidst concerns over weakening demand and abundant supply in the market. Meanwhile, US President Donald Trump and Treasury Secretary Scott Bessent hinted at potential economic challenges ahead, linked to their aggressive trade policies involving Canada, China, and Mexico, along with proposed cuts in public spending. In China, recent reports revealed that both consumer and producer prices fell more than anticipated in February, sparking worries about the impact on consumer spending despite increased credit availability. Additionally, OPEC+ members faced difficulties in meeting their production cut commitments, prompting plans for oil output increases starting April. Expectations of eased sanctions on Russian oil due to warming US-Russia relations also contributed to the supply dynamics in the market.
 

Natural Gas

Natural Gas futures for April settled up $.092 or 2.091% at $4.491. Natural gas prices jumped today, marking their highest point since late 2022. The surge was driven by a combination of harsh winter conditions, supply disruptions, record-breaking LNG exports, and ongoing geopolitical uncertainties. A deep freeze across North America and Europe has significantly increased heating demand, while extreme cold has caused production slowdowns due to "freeze-offs." Weather models indicate a shift in US temperatures, with a transition from unseasonably warm conditions between March 6-15 to predominantly colder-than-normal patterns from March 16-21. Additionally, LNG exports hit an all-time high of 15.6 bcfd last month, while uncertainties surrounding Canadian gas shipments to the US have raised supply concerns, complicating efforts to rebuild storage levels.

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