Coquest

Your Daily Energy Report for March 11, 2025

Posted on 2025-03-11

Crude Oil

Crude Oil futures for April settled up $.22 or .333% at $66.25. Oil prices rose on Tuesday, amidst concerns about potential economic impacts from U.S. tariffs. The tariffs, initially imposed by President Trump on major oil suppliers like Canada, Mexico, and China, and subsequently postponed, have fueled worries about global economic growth and oil demand. President Trump discussed the economy's "transition phase" over the weekend, refraining from predicting whether the tariffs would lead to a U.S. recession. Additionally, concerns intensified as China, the world's largest oil importer, showed signs of economic weakness with deepening deflationary pressures despite government stimulus efforts. Meanwhile, Russia's Deputy Prime Minister Alexander Novak announced on Friday that the OPEC+ group agreed to commence increasing oil production from April, with a caveat that adjustments could follow if market conditions deteriorate.
 

Natural Gas

Natural Gas futures for April settled down -$.038 or -.846% at $4.453. Natural gas prices pulled back slightly after hitting their highest level in over two years, even as updated weather projections indicated lower-than-expected demand heading into the final stretch of the storage withdrawal season. The EIA pointed to reduced inventories and anticipated stronger power-sector consumption as key factors in its upward revision of the Henry Hub spot price forecast for the year. A colder-than-usual winter across the U.S. contributed to a significant drawdown in supply, increasing the need for replenishment. However, recent weather models suggest that the most intense winter conditions have passed, signaling a seasonal decline in heating-related gas consumption.

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