Coquest

Your Daily Energy Report for March 27, 2025

Posted on 2025-03-27

Crude Oil

Crude Oil futures for May settled up $.27 or .388% at $69.92. Oil prices increased on Thursday, extending gains of approximately 1% from the previous day. Traders were evaluating tighter crude supplies amidst concerns about the potential economic impact of new US tariffs. Market attention was particularly focused on escalating trade tensions following President Donald Trump's announcement of 25% tariffs on imported cars and light trucks, with additional tariffs on auto parts slated for May. Sanctions on key producers like Iran and Venezuela added to supply concerns, prompting India’s Reliance Industries, operator of the world’s largest refining complex, to confirm plans to cease Venezuelan oil imports in response to the US tariff threat. Furthermore, data indicating a significant 3.3 million barrel decrease in US crude inventories last week provided additional support to the market.
 

Natural Gas

Natural Gas futures for April settled up $.089 or 2.305% at $3.95. Natural gas prices ended the session higher despite initially dipping after a bearish storage report, as traders shifted focus to anticipated summer demand for inventory replenishment. Prices dropped earlier when the EIA reported a 37 billion cubic feet storage injection last week, surpassing analysts' expectations of a 25 bcf build, according to a Reuters survey. This compares to a 30 bcf withdrawal during the same period last year and a typical five-year average draw of 31 bcf for this time of year. Looking ahead, with milder weather on the horizon, LSEG projected that gas demand across the Lower 48, including exports, will decline from 108.8 billion cubic feet per day this week to 103.3 bcfd next week.
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