This week’s newsletter focuses on critical developments and figures in the energy markets. We will review some of the key market trends and events, offering the latest analysis on global energy news.
Crude Markets Hit Record Low in Investor Sell-Off
Crude oil markets have faced an unprecedented sell-off, with ICE Brent futures reaching a record-high daily trading volume of over 3 million lots on April 7, more than three times the normal volume.
Compounding the issue, regional oil benchmarks are still in backwardation, with the Brent M1-M2 spread maintaining a $0.50 per barrel difference despite a sharp price drop of $10 per barrel in just three days.
A US investment firm has revised its price forecasts for the near term, projecting Brent and WTI prices to be $62 and $58 per barrel, respectively, by December 2025. The firm also expects a further $7 per barrel drop in 2026.
Industry leaders are urging action to address US tariff conflicts, and analysts anticipate further downward adjustments to 2025 demand forecasts. The EIA has delayed its monthly report until April 10 to reassess its models in light of a more challenging economic climate.
Market Movers
Woodside Energy (ASX:WDS), Australia’s largest oil producer, announced it will sell a 40% stake in its Driftwood LNG project in Louisiana to US infrastructure firm Stonepeak for $5.7 billion.
CATL (SHE:300750), the leading EV battery maker, is reportedly negotiating to acquire a controlling stake in Nio’s power division, aiming to expand its services in charging and battery swapping.
Colombia’s state-owned oil company, Ecopetrol (NYSE:EC), is exploring the purchase of SierraCol Energy, the country’s largest independent oil producer, for about $1.5 billion.
Italian oil giant ENI (BIT:ENI) has revealed plans for further asset divestments following its $1.65 billion deal with global trading firm Vitol in West Africa.
Tuesday, April 8, 2025
After a market-wide sell-off, oil prices slightly rebounded on Tuesday, with ICE Brent rising to $65 per barrel. However, the ongoing US-China trade tensions could worsen, with President Donald Trump threatening further tariffs on China. This could overshadow recent positive moves with South Korea and Japan, keeping the market outlook cautious in the short term.
Key Headlines:
Trump Threatens to Raise Tariffs on China: US President Donald Trump announced plans to impose an additional 50% tariff on China if Beijing does not withdraw its 34% import tariff on US goods. This would bring China’s tariff rate to 104%.
Saudi Aramco Lowers Crude Prices: In response to the escalating US-China trade war and the ongoing unwind of OPEC+ cuts, Saudi Aramco has slashed its prices for May-loading cargoes to Asia by $2.30 per barrel.
OPEC+ Production Declines: Due to tightening US sanctions on Iran and Venezuela, OPEC’s output fell to 26.63 million barrels per day in March, down 110,000 barrels per day from February.
UK Considers Tariffs on Oil Products: In retaliation to US tariffs, the UK government is considering adding refined oil products to its own tariff list, as it imports a quarter of its diesel from the US Gulf Coast.
US Gas Faces Tariff Concerns
US natural gas futures for May dropped to $3.74 per mmBtu, marking the lowest closing price in nearly eight weeks. Despite forecasts of colder weather, market concerns over a potential recession have overshadowed growth in gas demand.
Panama Canal Proposes New LPG Pipeline
The Panama Canal Authority has opened bidding for a new pipeline to transport liquefied petroleum gas (LPG) across the waterway. The project aims to speed up US propane deliveries to Japan and South Korea, cutting current delivery times of up to 35 days.
Libya’s New Licensing Round
Libya is offering production-sharing agreements (PSAs) in its first licensing round since 2008. The country hopes the incentives will boost its production capacity to 2 million barrels per day.
Chevron Ordered to Restore Louisiana Wetlands
Chevron (NYSE:CVX) has been ordered to pay $740 million to restore coastal wetlands in Louisiana. The company was held responsible for damages caused by its former subsidiary, Texaco, which it acquired in 2001.
Canada Reverses Policy on Oil Projects
With former Prime Minister Justin Trudeau’s departure, oil is regaining political favor in Canada. Opposition leader Pierre Poilievre has promised to fast-track the approval of 10 key energy projects, including Suncor Energy’s 300,000 barrel-per-day Base Plant mine.
Copper Price Volatility Leads to Stockpiling
In an unusual turn of events, copper prices plunged below $8,500 per metric tonne, prompting Chinese buyers to stock up. This led to a dramatic $1,000 rally in just two hours, the largest intraday price move since 2009.
Mexico Turns to Fracking Amid US Tariff Fears
Facing declining domestic gas fields, Mexico is reaching out to private investors to expand fracking operations. This marks a shift from the policies of former President Lopez Obrador, as Mexico seeks to boost its energy independence.
Gold Prices Recover After Market Decline
Gold prices surged back above $3,000 per ounce after three consecutive days of declines. The recovery is attributed to a weakening US dollar and growing concerns over the US-China tariff conflict.
Saudi Arabia Signs LNG Deal with US Firm
US LNG developer NextDecade has signed an agreement with Saudi Aramco (TADAWUL:2222) to supply 1.2 million tonnes of LNG per year from Train 4 of the Rio Grande LNG project, subject to a positive final investment decision.
Related Topics:
- U.S. Crude Oil Falls Below $60 on Recession Fears from Tariffs
- Today’s Brent Crude Oil Price Chart (April 7)
- Oil Price Index Live Chart Today (April 7)