Coquest

Your Daily Energy Report for April 4, 2025

Posted on 2025-04-04

Crude Oil

Crude Oil futures for May settled down -$4.96 or -7.409% at $61.99. Oil prices continued to drop on Friday, hitting their lowest point since August 2021. This followed a 6.6% decrease the previous day amid concerns about a potential global economic slowdown and weakening oil demand. Investor confidence has been shaken by escalating trade tensions, notably China's announcement of a 34% tariff on U.S. goods. The specter of recession and uncertainty surrounding international trade have further contributed to market jitters. Additionally, OPEC+ has announced intentions to increase output by 411,000 barrels per day starting in May, exacerbating pressures on the supply side. Despite exemptions for U.S. energy products from tariffs, ongoing trade disruptions continue to exert significant downward pressure on markets. For the week, the oil benchmark recorded its largest weekly decline in six months, nearly 10% lower.
 

Natural Gas

Natural Gas futures for May settled down -$.301 or -7.274% at $3.837. Natural gas prices fell today, amid mounting recession concerns sparked by China’s imposition of new 34% tariffs on American products, which rattled both energy and equity markets. In response, China criticized the U.S. tariffs, urging their removal and warning of broader impacts on global trade and supply networks. Market participants are now paying close attention to supply-demand dynamics. According to the latest EIA data, domestic gas storage remains 4.3% under the seasonal average, even after three straight weeks of inventory builds. March saw record-high LNG exports at 15.8 billion cubic feet per day, while production hit a peak of 106.2 bcfd but has begun to ease in April. Forecasts indicate average seasonal temperatures are likely to persist through mid-April.
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