Coquest

Your Daily Energy Report for April 9, 2025

Posted on 2025-04-09

Crude Oil

Crude Oil futures for May settled up $2.77 or 4.649% at $62.35. Oil prices surged on Wednesday, after President Trump’s announcement to halt reciprocal tariffs for most countries for a 90-day period, a decision that brought relief to markets and encouraged renewed interest in riskier assets. Notably, China was not included in this suspension, with tariffs on its exports increasing to 125% in response to recent retaliatory measures. Still, the overall softening of trade tensions sparked a wave of optimism across commodities. Additional momentum came from the latest data released by the EIA, which showed an unexpectedly large drop in gasoline and distillate supplies—helping to counterbalance a slight increase in crude inventories. Also contributing to the upward move were signals from OPEC+ suggesting they may push back previously planned production hikes, alleviating worries about a potential supply glut.
 

Natural Gas

Natural Gas futures for May settled up $.351 or 10.13% at $3.816. Natural gas prices spiked today, joining the broader market rally as tightening supply and anticipated increases in heating needs fueled the rally. The gains followed a temporary relaxation of trade levies announced by President Trump—though duties on goods from China were simultaneously raised. Supporting the price surge were all-time high shipments to LNG export terminals, underscoring solid international demand. Even with the recent price climb, gas reserves are still running about 3% under the seasonal norm, largely due to heavy usage during winter. Early April figures show that average production across the Lower 48 states dipped to 105.9 billion cubic feet per day, with further decreases anticipated.
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