Coquest

Your Daily Energy Report for May 2, 2025

Posted on 2025-05-02

Crude Oil

Crude Oil futures for June settled down -$.95 or -1.604% at $58.29. Oil prices fell on Friday following OPEC+'s decision to advance its meeting to Saturday, raising concerns of an impending increase in supply. The rescheduling underscores mounting pressure to address declining prices and ample supply, particularly with Saudi Arabia advocating for another production boost. Oil prices have fallen approximately 7% this week, influenced by increased US production and sluggish demand from China. Many traders anticipate OPEC+ will once again expand supply, after last month's unexpected increase exceeded initial plans. Despite some optimism from news about potential resumption of US-China trade talks, it failed to counter prevailing bearish sentiment.
 

Natural Gas

Natural Gas futures for June settled up $.151 or 4.34% at $3.630. Natural gas prices rose today, as lower production levels and strong LNG shipments provided upward pressure. Output has declined by 2.8 billion cubic feet per day over the past week, hitting a two-month low near 102.6 bcfd. At the same time, liquefied natural gas exports averaged a record 16.0 bcfd in April, boosted by volumes heading to the still-developing Plaquemines terminal. Forecasts indicate that much of the continental U.S. will experience above-average temperatures through mid-May. Experts warn that if production remains high and the weather continues to be mild, May could see historically large storage additions. Recent government data showed natural gas storage grew by 107 bcf in the week ending April 25, well above both last year’s 64 bcf and the five-year norm of 58 bcf, bringing inventories close to typical seasonal levels.
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