Coquest

Your Daily Energy Report for March 28, 2025

Posted on 2025-03-28

Crude Oil

Crude Oil futures for May settled down -$.56 or -.801% at $69.36. Oil prices dropped on Friday, amid a third consecutive weekly uptrend fueled by global supply tightness concerns. Earlier this week, the US warned of imposing 25% tariffs on countries buying Venezuelan crude, disrupting trade flows, notably to China, the largest purchaser of Venezuelan oil. In response, Reliance Industries of India intends to cease Venezuelan oil imports. Furthermore, US crude inventories dropped by 3.34 million barrels last week, more than double the anticipated decline, signaling robust demand. Meanwhile, markets are assessing the impact of newly proposed US auto tariffs on the oil sector while preparing for additional tariffs scheduled for April 2. On the supply side, OPEC+ plans to gradually resume halted production starting in April, marking the first of a series of planned output increases, coinciding with expectations for increased Russian oil presence in global markets.
 

Natural Gas

Natural Gas futures for May settled up $.14 or 3.567% at $4.065. Natural gas prices climbed today even as record-high production and mild weather applied downward pressure. Projections suggest that temperatures across the Lower 48 states will remain above average through April 9, likely reducing heating demand and allowing for storage increases. Analysts anticipate that March could mark the first net inventory build for this month in over a decade. Meanwhile, gas production has averaged 106.0 bcfd in March, exceeding the previous record set in February at 105.1 bcfd. On the export side, LNG shipments have inched up to 15.7 bcfd, supported by additional capacity coming online at Venture Global’s Plaquemines LNG facility in Louisiana.
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