Coquest

Your Daily Energy Report for April 21, 2025

Posted on 2025-04-21

Crude Oil

Crude Oil futures for May settled down -$1.60 or 2.474% at $63.08. Oil prices fell on Monday, influenced by improving US-Iran relations that could lead to increased Iranian crude oil entering the market. Significant progress was reported in bilateral talks aimed at potentially drafting a framework for a nuclear agreement. Concurrently, new US sanctions targeted a Chinese refinery implicated in processing Iranian oil. Concerns over global demand persisted amid fears that US tariffs might dampen international economic growth. Additionally, a recent survey indicated nearly a 50% chance of a US recession within a year. Furthermore, despite expectations that OPEC+ would raise output by 411,000 barrels per day in May, adjustments by over-quota countries might partially offset this increase.
 

Natural Gas

Natural Gas futures for May settled down -$.229 or -.7057% at $3.016. Natural gas prices slid today, to the lowest level seen since late January. The decline was driven by surging output and forecasts for milder weather, which have dampened expectations for near-term demand. In April, production in the Lower 48 reached all-time highs, with daily volumes topping 108 billion cubic feet. Forecasts show above-normal temperatures extending into early May, which is expected to cut heating use and boost storage injections. Meanwhile, uncertainty surrounding President Trump’s fluctuating tariff strategies has sparked worries about a potential slowdown in global economic activity and energy consumption. Despite these headwinds, natural gas exports have remained robust, with LNG shipments hitting a new peak of 16.1 billion cubic feet per day this month, aided by growing operations at a key facility being developed in Louisiana.
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