Coquest

Your Daily Energy Report for March 24, 2025

Posted on 2025-03-24

Crude Oil

Crude Oil futures for May settled up $.83 or 1.216% at $69.11. Oil prices increased on Monday, marking their highest point in more than three weeks. This increase followed President Trump's proposal of a 25% tariff on Venezuelan oil buyers, which heightened tensions with the Maduro government. China, a significant purchaser of Venezuelan crude, would face substantial impacts. Concurrently, OPEC+ plans to implement a second consecutive production boost in May, aiming for a 135,000 bpd increase despite ongoing efforts to enforce output reductions on non-compliant members. Since 2022, the group has collectively reduced production by 5.85 million bpd but intends to gradually ease these restrictions. Ahead of an OPEC+ ministerial meeting on April 5, Russia has hinted at potential policy shifts in response to emerging market dynamics.
 

Natural Gas

Natural Gas futures for April settled down -$.066 or -1.658% at $3.914. Natural gas prices dropped today due to record-breaking production and expectations of milder temperatures reducing demand in the coming weeks. Output in the Lower 48 states has averaged 106.0 billion cubic feet per day (bcfd) in March, exceeding the previous high of 105.1 bcfd set in February. Forecasts indicate above-average warmth through early April, which is likely to limit heating needs and enable utilities to increase gas storage. Analysts predict that stockpiles could expand in March for the first time since 2012 and only the second time in history. At the same time, LNG exports remain robust, with shipments from the eight largest U.S. export facilities averaging 15.8 bcfd this month, surpassing February’s peak of 15.6 bcfd. The increase is largely attributed to additional capacity coming online at Venture Global’s Plaquemines LNG plant in Louisiana.

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