Coquest

Your Daily Energy Report for March 21, 2025

Posted on 2025-03-21

Crude Oil

Crude Oil futures for May settled up $.02 or .029% at $68.28. Oil prices rose slightly on Friday, on track for their strongest week since early January. This rise was driven by fresh US sanctions on Iran and OPEC+'s decision to implement output reductions, heightening concerns about future supply. The US Treasury imposed new sanctions targeting a Chinese refinery and vessels involved in transporting Iranian crude to China, marking the fourth round since February. President Trump's commitment to maximum pressure to eliminate Iran's oil exports has led analysts to predict a 1 million bpd decrease in Iranian crude exports due to stricter sanctions. Additionally, OPEC+ announced plans to cut production among seven members, aiming to reduce output by 189,000 to 435,000 bpd monthly until June 2026. Despite this, increases in production from Kazakhstan, Iraq, and Russia are anticipated to counterbalance renewed production plans from other countries into the next year.
 

Natural Gas

Natural Gas futures for April settled up $.005 or .126% at $3.980. Natural gas prices inched up Friday after a sharp decline the previous day, triggered by an unexpected storage increase that suggested weaker-than-anticipated early-season demand. The latest report from the EIA revealed a 9 Bcf storage build for the week ending March 14, marking the season’s first increase and catching the market off guard. Analysts had largely anticipated either a slight draw or a near-balanced result. Weather projections indicate relatively light national demand for atleast the next week, with cooler systems bringing precipitation to parts of the eastern and western U.S., while much of the country is expected to see temperatures at or above seasonal norms.

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