Coquest

Your Daily Energy Report for March 31, 2025

Posted on 2025-03-31

Crude Oil

Crude Oil futures for May settled up $2.12 or 3.057% at $71.48. Oil prices jumped on Monday, marking its highest level since February 21. The increase followed President Trump's announcement of potential secondary tariffs ranging from 25% to 50% on purchasers of Russian oil, should he perceive Moscow as hindering efforts to resolve the Ukraine conflict. Trump also issued warnings of additional tariffs and possible military actions against Iran if negotiations on its nuclear program with the U.S. falter. Meanwhile, a U.S.-brokered ceasefire in the Black Sea region between Ukraine and Russia remains precarious, with Moscow seeking sanctions relief in exchange for compliance. Moreover, concerns over a looming global trade war intensified due to President Trump's forthcoming reciprocal tariffs effective April 2, raising apprehensions about dampened economic growth and reduced energy demand.
 

Natural Gas

Natural Gas futures for May settled up $.054 or 1.328% at $4.119. Natural gas prices increased today, reaching their highest level in over a week, as strong LNG export demand and a dip in daily production provided support. Gas shipments to the country's top eight LNG facilities averaged 15.8 bcfd in March, exceeding the previous record of 15.6 bcfd set in February, aided by new capacity coming online at the Plaquemines LNG facility in Louisiana. Simultaneously, daily production dropped to 105.2 bcfd, the lowest in a week, though overall March output edged upto106.0 bcfd from February’s 105.1 bcfd. Forecasts indicate mild weather ahead, which could keep consumption subdued and allow for an unusual March storage build—the first since 2012. Despite this, prices have surged over 15% in the first quarter, as inventories remain around 5% below the seasonal norm.
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