Coquest

Your Daily Energy Report for February 11, 2025

Posted on 2025-02-11

Crude Oil

Crude Oil futures for March settled up $1.32 or 1.859% at $72.32. Oil prices rose on Tuesday, driven by indications of reduced Russian supply and escalating supply risks. Reports indicated that Russian production in January fell further below its OPEC+ quota, coinciding with new US sanctions targeting individuals and tankers involved in transporting Iranian crude to China, in efforts to exert pressure on Tehran. Additionally, concerns heightened after Trump urged Israel to end its ceasefire with Hamas unless hostages were returned, potentially reigniting conflict amid accusations of deal violations by both parties. Despite these factors, gains were tempered by cautious sentiment amid escalating trade tensions and broader economic uncertainties. Trump's recent tariffs on steel and aluminum could disrupt the US energy sector, particularly impacting oil drillers reliant on specialized steel not available domestically.
 

Natural Gas

Natural Gas futures for March settled up $.075 or 2.178% at $3.519. Natural gas rose today, as forecasts for colder weather in February signaled increased demand. Updated weather projections indicate that much of the country will experience persistent cold through late February, driving up the need for heating. According to NatGasWeather, multiple frigid systems are expected to sweep across the U.S., with temperatures potentially dropping to -10°F in certain regions. Meanwhile, global supply concerns deepened following a large-scale missile and drone strike by Russia on Ukraine’s energy infrastructure. Key natural gas production sites in the Poltava region suffered heavy damage, heightening worries about potential supply disruptions. In Europe, storage levels have dropped to their lowest point since the onset of the 2022 energy crisis.

Continue reading the full Coquest Daily Report.
 

---