Coquest

Your Daily Energy Report for May 1, 2025

Posted on 2025-05-01

Crude Oil

Crude Oil futures for June settled up $1.03 or 1.769% at $59.24. Oil prices rose on Thursday, rebounding from a recent three-week low. The rise was underpinned by a surge in US equities fueled by strong tech earnings and signals suggesting the Trump administration might ease tariff threats. Earlier, oil prices had fallen over 2%, driven by concerns about demand and expectations of increased OPEC+ supply, with Saudi Arabia indicating a willingness to manage lower prices and potentially advocating for higher output at the upcoming May 5 meeting. Despite these bearish factors, geopolitical tensions persisted, including US lawmakers' calls for severe sanctions on Russia and ongoing measures targeting Iranian and Venezuelan oil. On the demand side, sluggish economic indicators weighed on sentiment, such as a contraction in US GDP and China experiencing its most significant factory downturn since 2023. Inventory data revealed declines in US crude and gasoline stocks last week, providing uplift to prices.
 

Natural Gas

Natural Gas futures for June settled up $.153 or 4.60% at $3.479. Natural gas prices increased today, fueled by a combination of lower production and all-time high LNG export volumes, as traders anticipated the delayed release of the EIA's weekly storage data. Expectations point to a storage build of 107 billion cubic feet for the week ending April 25, a figure notably above both the same period last year and the typical five-year average, attributed to reduced heating demand during a spell of mild temperatures. Should this be confirmed, storage volumes would be in line with seasonal trends. On the supply side, output has decreased by 3.5 billion cubic feet per day in recent days, falling to 102.0 bcfd —the lowest level in two months. LNG exports have surged, averaging a record 16.0 bcfd in April, due to increased shipments from the developing Plaquemines terminal.
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