Coquest

Your Daily Energy Report for April 7, 2025

Posted on 2025-04-07

Crude Oil

Crude Oil futures for May settled down -$1.29 or -2.081% at $60.70. Oil prices fell on Monday, marking their lowest level since April 2021. This drop followed erroneous speculation about a 90-day halt to new US tariff policies. Earlier gains, pushing prices briefly above $63, were fueled by hopes of tariff delays, which were later debunked, prompting a swift market reversal. Investor anxiety persists amid volatile conditions, heightened by concerns that an escalating trade dispute could dampen global economic growth and reduce energy demand. Adding to uncertainties, President Trump threatened a new 50% tariff on Chinese imports unless Beijing lifts retaliatory duties. Last week, WTI experienced its sharpest weekly decline in two years after President Trump's announcement of extensive new tariffs, triggering retaliatory measures from China and increasing the risk of a global economic slowdown.
 

Natural Gas

Natural Gas futures for May settled down -$.182 or -4.743% at $3.655. Natural gas prices continued their fall today, reaching their lowest point in seven weeks, as record-breaking production and economic uncertainty weighed on the market. Output from the Lower 48 states averaged 106.3 billion cubic feet per day so far this month, marginally surpassing the previous high of 106.2 bcfd set in March. Warmer temperatures and subdued consumption in March likely enabled utilities to inject gas into storage unusually early—something that’s only happened once before in over a decade. Forecasts suggest temperatures across the Lower 48 will stay close to seasonal norms through April 22. Meanwhile, gas flows to the country’s top eight LNG terminals dipped slightly to 15.7 bcfd, just below last month’s all-time high of 15.8 bcfd.
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