Coquest

Your Daily Energy Report for April 22, 2025

Posted on 2025-04-22

Crude Oil

Crude Oil futures for May settled up $1.23 or 1.95% at $64.31. Oil prices rose on Tuesday, driven by technical buying following a more than 2% decline in the previous session. However, market sentiment remains pessimistic amidst ongoing US-Iran negotiations, which could potentially reintroduce Iranian oil into global markets. Economic uncertainties stemming from tariffs and the uncertain trajectory of US monetary policy continue to dampen investor confidence, potentially curbing oil demand. Meanwhile, concerns over a possible US recession within the next year have added to market jitters. Additionally, despite OPEC+ planning to increase output by 411 thousand barrels per day in May, compliance issues among member countries could mitigate some of these production hikes.
 

Natural Gas

Natural Gas futures for May settled down -$.009 or-.298% at $3.007. Natural gas prices hovered around the $3 level, as mild spring conditions suppress consumption even as output continues to climb and LNG feedgas usage dips. Forecasts suggest continued temperate weather across much of the country, with widespread highs in the 60s to 80s over the coming two weeks—typical of the "shoulder season" when neither heating nor cooling needs drive significant energy use. This is keeping overall demand muted. On the supply side, production remains elevated; Lower-48 dry gas volumes hit 106.8 Bcf/d on Monday, a notable increase from the same period last year, while demand has dropped to 65.9 Bcf/d, down over 7% year-on-year. LNG exports remain strong at 15.0 Bcf/d, but the current supply-demand mismatch is putting downward pressure on prices. On the demand side, national electricity generation is trending higher—Edison Electric Institute reported a 6.4% annual increase for the week ending April 12.
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