Coquest

Your Daily Energy Report for February 12, 2025

Posted on 2025-02-12

Crude Oil

Crude Oil futures for March settled down -$1.95 or -2.66% at $71.37. Oil prices fell on Wednesday. The decline accelerated following remarks by US President Trump regarding discussions with Russian President Putin, leading to market speculation about reduced supply risks from Russia. Trump also announced plans for negotiations aimed at ending Russia’s conflict with Ukraine, prompting tariffs on Russian oil producers and tanker operators. Additionally, US crude inventories rose by 4.1 million barrels last week, surpassing expectations of a 3 million-barrel increase. Furthermore, a report indicated higher-than-expected consumer prices in the US, reinforcing expectations of a more aggressive stance from the Federal Reserve and exerting pressure on commodities priced in US dollars.
 

Natural Gas

Natural Gas futures for March settled up $.046 or 1.307% at $3.565. Natural gas climbed today, supported by rising LNG exports and forecasts of colder weather that are expected to drive up heating demand. LNG export flows have increased to 15.1 bcfd in early February, compared to 14.6 bcfd in January, approaching December’s peak levels. Forecasters anticipate below-average temperatures through February 22, sustaining strong demand. January’s extreme cold likely led to record-breaking withdrawals from storage, possibly nearing the 994 bcf mark seen in early 2022. On the supply side, gas production in the Lower 48 states has grown to 106.1 bcfd in February, up from 102.7 bcfd in January, though a slight dip in daily output is projected. Meanwhile, China is set to impose tariffs on US goods, including LNG, starting Monday, with no indications of diplomatic progress between Washington and Beijing.

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