Coquest

Your Daily Energy Report for March 18, 2025

Posted on 2025-03-18

Crude Oil

Crude Oil futures for April settled down -$.68 or -1.006% at $66.90. Oil prices fell on Tuesday, as oversupply fears weighed on the market. Weakened global trade and shipping, exacerbated by prolonged geopolitical tensions, have slowed oil demand. The trade dispute initiated by U.S. President Donald Trump continues to strain major economies, while OPEC and its allies plan to raise production by 138,000 barrels per day—the first increase since 2022—adding to supply concerns. Speculation is growing that a potential Ukraine ceasefire could lead to eased sanctions on Russian oil, further increasing global supply. Meanwhile, geopolitical risks continue to drive volatility. Israel launched its first major strike on Gaza since the January ceasefire, while Trump issued warnings to Iran over Houthi rebel attacks. With escalating tensions in the Middle East, oil prices remain highly sensitive to global developments.
 

Natural Gas

Natural Gas futures for April settled up $.034 or .846% at $4.052. Natural gas prices rose today, supported by strong LNG exports and a dip in production. Daily output dropped to a three-week low of 104.1 bcfd, though the monthly average remains above February’s peak. Meanwhile, LNG shipments reached new records, averaging 15.7 bcfd in March, driven by increased activity at Venture Global’s Plaquemines LNG facility. Weather forecasts indicate cooler conditions next week, likely increasing demand and leading to larger storage withdrawals. Current storage levels are already 12% below average due to severe cold earlier in the year. Looking ahead, temperatures are expected to stay close to seasonal norms through early April.

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