Oil and Gas prices - April 11
Posted: Fri Apr 11, 2025 7:10 pm
Trading Economics:
WTI Oil Price
WTI crude oil futures rose 2.4% to settle at $61.50 per barrel on Friday, after U.S. Energy Secretary Chris Wright signaled that the U.S. may move to block Iran’s oil exports in efforts to pressure Tehran over its nuclear program. < If so, this is SIGNIFICANT.
> Still, concerns over the US-China trade dispute continued to weigh on demand expectations. China announced a sharp tariff hike on U.S. goods to 125%, while the White House confirmed total U.S. tariffs on Chinese imports now stand at 145%.
> In response, the U.S. Energy Information Administration cut its global oil demand forecast, warning that prolonged trade tensions could dampen consumption.
> Meanwhile, OPEC+ surprised markets by accelerating plans to boost output, raising fears of oversupply.
> With both demand and supply risks in play, oil prices remain on shaky ground.
> For the week, WTI crude slipped 1.26%, following a 10.6% drop in the prior period to the lowest level since April 2021.
Henry Hub Natural Gas Price
US natural gas futures fell to $3.55/MMBtu, hit by a larger-than-expected storage build and forecasts for mild weather and weaker demand.
> The EIA reported a 57 bcf storage injection last week, well above the five-year average of 17 bcf. < The storage report for the week ending April 11 is going to show a build of ~18 Bcf, 35 Bcf below the 5-year average per Celsius Energy's most recent updated forecast.
> Mild temperatures kept demand low, helping utilities stockpile gas unusually early for this time of year.
> Storage additions may have even occurred in March — something that’s only happened once before.
> Looking ahead, forecasts show near-normal temperatures through April 25.
> Meanwhile, LNG exports remain strong, with flows hitting 16.1 bcfd so far in April.
> On the other hand, gas output is slightly down from record levels.
> Broader energy markets are also under pressure from ongoing uncertainty around Trump’s shifting tariff policy, which is raising concerns about global growth.
WTI Oil Price
WTI crude oil futures rose 2.4% to settle at $61.50 per barrel on Friday, after U.S. Energy Secretary Chris Wright signaled that the U.S. may move to block Iran’s oil exports in efforts to pressure Tehran over its nuclear program. < If so, this is SIGNIFICANT.
> Still, concerns over the US-China trade dispute continued to weigh on demand expectations. China announced a sharp tariff hike on U.S. goods to 125%, while the White House confirmed total U.S. tariffs on Chinese imports now stand at 145%.
> In response, the U.S. Energy Information Administration cut its global oil demand forecast, warning that prolonged trade tensions could dampen consumption.
> Meanwhile, OPEC+ surprised markets by accelerating plans to boost output, raising fears of oversupply.
> With both demand and supply risks in play, oil prices remain on shaky ground.
> For the week, WTI crude slipped 1.26%, following a 10.6% drop in the prior period to the lowest level since April 2021.
Henry Hub Natural Gas Price
US natural gas futures fell to $3.55/MMBtu, hit by a larger-than-expected storage build and forecasts for mild weather and weaker demand.
> The EIA reported a 57 bcf storage injection last week, well above the five-year average of 17 bcf. < The storage report for the week ending April 11 is going to show a build of ~18 Bcf, 35 Bcf below the 5-year average per Celsius Energy's most recent updated forecast.
> Mild temperatures kept demand low, helping utilities stockpile gas unusually early for this time of year.
> Storage additions may have even occurred in March — something that’s only happened once before.
> Looking ahead, forecasts show near-normal temperatures through April 25.
> Meanwhile, LNG exports remain strong, with flows hitting 16.1 bcfd so far in April.
> On the other hand, gas output is slightly down from record levels.
> Broader energy markets are also under pressure from ongoing uncertainty around Trump’s shifting tariff policy, which is raising concerns about global growth.