Oil and Gas prices on January 20

[dan_s]

"Drill Baby Drill" will have very little impact on U.S. oil production. Natural gas drilling may pick up because of higher prices.

Trading Economics:
Oil
WTI crude futures held below $76.70 per barrel on Monday as markets reacted to U.S. President Donald Trump's pledge to expand domestic crude production, including plans to invoke emergency powers to accelerate energy output immediately upon taking office.
Additionally, his decision to delay imposing tariffs on China, Canada, and Mexico offered temporary relief, easing fears of supply disruptions, particularly from Canada, the largest supplier of crude to the U.S. < He won't do anything with Canada until he sees who they elect. Team Trump has common sense. They know that a tariff on Canadian oil will significantly increase transportation fuel prices in the U.S., which will increase inflation. Therefore, it ain't happening.
Meanwhile, speculation surrounding potential adjustments to U.S. sanctions on Russian oil added uncertainty.
Geopolitical risks also declined as easing tensions in the Middle East, marked by a ceasefire between Hamas and Israel, contributed to downward pressure on prices. < I expect Trump to go back to "Maximum Pressure" on Iran.

Natural Gas
US natural gas futures sank toward $3.75/MMBtu, extending the sharp pullback from the two-year high of $4.3 touched on January 16th amid an eased demand outlook as markets awaited regulation changes under the Trump presidential administration. < The "Paper Traders" have to close out their long positions on FEB25 contracts. They cannot take physical delivery.
Forecasts of warmer weather prevailed through later January following the Arctic blast before the weekend, allowing traders to take profits and driving investors to focus on warmer days ahead, easing demand for gas-intensive heating.
In the meantime, the Trump administration is expected to declare an energy emergency to increase energy output in the US.
His team also pledged to lift the restart approvals of LNG export licences, but such members are unlikely to be approved in court anytime soon, limiting the rebound in prices. Meanwhile, federal data showed a significant withdrawal of 258 billion cubic feet of gas from storage for the week ending January 10th, far exceeding the 150 bcf withdrawn in the corresponding period of the previous week. < The next two weekly draws should push storage more than 100 Bcf below the 5-year average on January 24. The U.S. natural gas market is MUCH THIGTER than people realize.