Coquest

Your Daily Energy Report for February 10, 2025

Posted on 2025-02-10

Crude Oil

Crude Oil futures for March settled up $1.32 or 1.859% at $72.32. Oil prices rose on Monday. This increase was driven by renewed supply concerns following new US sanctions targeting individuals and tankers involved in transporting Iranian crude to China. Despite these developments, investors largely ignored President Donald Trump’s latest threats. However, the upward momentum in oil prices was tempered by ongoing worries about the economic impact of recent US tariffs on steel and aluminum, which could disrupt the domestic energy sector, especially affecting oil drillers reliant on specialized steel imports. Furthermore, China's retaliatory tariffs on US goods came into effect, although their impact is expected to be minimal due to China's limited imports of US energy products. While supply constraints are bolstering oil prices, market sentiment remains cautious amid escalating trade tensions and broader economic uncertainties.
 

Natural Gas

Natural Gas futures for March settled up $.135 or 4.080% at $3.444. Natural gas climbed today, supported by rising LNG exports and colder weather projections, which are expected to drive up heating demand. LNG export facility gas flows have increased to 15.1 bcfd in early February, up from 14.6 bcfd in January, approaching record levels seen in December. Forecasts indicate below-average temperatures through February 22, sustaining strong demand. The extreme cold in January likely led to substantial withdrawals from storage, possibly nearing the record 994 bcf seen in early 2022. On the supply side, natural gas production in the Lower 48 states has risen to 106.1 bcfd in February, compared to 102.7 bcfd last month, though a slight decline in daily output is expected. Meanwhile, China is set to impose new tariffs on U.S. products, including LNG, starting Monday.

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