Oil & Gas Prices - March 6
Posted: Thu Mar 06, 2025 9:02 pm
Trading Economics
WTI crude oil futures fluctuated around $66 per barrel on Thursday, after dropping to a multi-year low of $65.22 the previous session.
> Prices faced pressure from ongoing trade tensions, with the U.S. imposing tariffs on Canadian and Mexican goods, including energy imports, while OPEC+ plans to raise output.
> Additionally, the U.S. is considering exempting automakers from the 25% tariff, with reports suggesting President Trump may eliminate the 10% tariff on Canadian energy imports like crude and gasoline.
> OPEC+, which includes Russia, agreed on Monday to increase production for the first time since 2022. < IMO this is the primary reason for the dip in oil prices. The "Tariff War" is messing with the global oil market, which IMO should put upward pressure on oil prices.
> Furthermore, U.S. crude inventories rose more than expected, driven by seasonal refinery maintenance, while gasoline and distillate stocks declined due to increased exports, according to the Energy Information Administration.
US natural gas futures fell to $4.3/MMBtu from a 25-month high of $4.5 in the previous session, following EIA data showing a smaller-than-expected storage draw.
> US utilities withdrew 80 billion cubic feet (bcf) of gas for the week ending February 28, below market forecasts of 96 bcf, bringing total inventories to 1,760 bcf.
> Despite record production of 104.7 bcfd in February, storage levels remain 24.9% lower than a year ago and 11.3% below the five-year average.
> LNG exports also surged to a record 15.6 bcfd last month, supported by new capacity at Venture Global’s Plaquemines plant.
> However, forecasts for milder weather through March 18 are expected to curb heating demand.
MY TAKE: Winter ain't over yet and the year-over-year in LNG exports will make it very difficult to refill storage in Q2.
WTI crude oil futures fluctuated around $66 per barrel on Thursday, after dropping to a multi-year low of $65.22 the previous session.
> Prices faced pressure from ongoing trade tensions, with the U.S. imposing tariffs on Canadian and Mexican goods, including energy imports, while OPEC+ plans to raise output.
> Additionally, the U.S. is considering exempting automakers from the 25% tariff, with reports suggesting President Trump may eliminate the 10% tariff on Canadian energy imports like crude and gasoline.
> OPEC+, which includes Russia, agreed on Monday to increase production for the first time since 2022. < IMO this is the primary reason for the dip in oil prices. The "Tariff War" is messing with the global oil market, which IMO should put upward pressure on oil prices.
> Furthermore, U.S. crude inventories rose more than expected, driven by seasonal refinery maintenance, while gasoline and distillate stocks declined due to increased exports, according to the Energy Information Administration.
US natural gas futures fell to $4.3/MMBtu from a 25-month high of $4.5 in the previous session, following EIA data showing a smaller-than-expected storage draw.
> US utilities withdrew 80 billion cubic feet (bcf) of gas for the week ending February 28, below market forecasts of 96 bcf, bringing total inventories to 1,760 bcf.
> Despite record production of 104.7 bcfd in February, storage levels remain 24.9% lower than a year ago and 11.3% below the five-year average.
> LNG exports also surged to a record 15.6 bcfd last month, supported by new capacity at Venture Global’s Plaquemines plant.
> However, forecasts for milder weather through March 18 are expected to curb heating demand.
MY TAKE: Winter ain't over yet and the year-over-year in LNG exports will make it very difficult to refill storage in Q2.