Coquest

Your Daily Energy Report for April 23, 2025

Posted on 2025-04-23

Crude Oil

Crude Oil futures for June settled down -$1.40 or -2.199% at $62.27. Oil prices slipped on Wednesday, following growing speculation that OPEC+ could extend its current trend of increasing oil output over the coming months. Notably, Kazakhstan announced its intention to prioritize domestic policy over OPEC+ agreements, hinting at a rise in its oil production and revealing growing friction within the alliance as several members struggle to adhere to production limits. This shift has prompted discussions among certain producers about implementing another supply hike in June, following an already surprising decision to ramp up output three times faster than previously anticipated in May. Concurrently, the U.S. introduced new sanctions targeting an Iranian individual linked to liquefied petroleum gas and crude oil logistics, raising the possibility that these measures might impact Iran’s oil export levels. On the consumption side, global demand forecasts remain murky. The ongoing trade dispute between the U.S. and China continues to exert downward pressure on demand sentiment, despite recent hints from Washington that it could soften its tariff stance.
 

Natural Gas

Gas futures for May settled up $.015 or .499% at $3.022. Natural gas prices inched higher in anticipation of the upcoming storage data release. Recent models from a private weather analysis firm point to persistently above-average temperatures stretching across the Midwest and Eastern regions into early May. This unseasonal warmth has notably suppressed heating-related consumption, dampening overall demand. However, the rise in electricity output is providing some underlying support, with power generation increasing 6.4% compared to the same week last year, ending April 12. Meanwhile, LNG shipments continue to hold steady at roughly 15.6 billion cubic feet per day.
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