Oil prices score a weekly rise against a ‘murky’ supply and demand backdrop. Natural-gas futures fall over 3% for the week
By Myra P. Saefong, Joseph Adinolfi, Market Watch
SAN FRANCISCO/NEW YORK
EnergiesNet.com 03 21 2025
Oil futures settled higher on Friday, contributing to a gain for the week as traders weighed concerns about the global economy and energy demand against support from risks to crude supplies in the Middle East.
Price moves
- West Texas Intermediate crude for May delivery CL.1 CLK25 climbed by 21 cents, or 0.3%, to settle at $68.28 a barrel on the New York Mercantile Exchange, with prices for the front month contract up nearly 2.1% for the week, according to Dow Jones Market Data.
- May Brent crude BRN00 BRNK25, the global benchmark, tacked on 16 cents, or 0.2%, to settle at $72.16 a barrel on ICE Futures Europe, up 2.2% for the week.
- April gasoline RBJ25 added 0.2% to $2.1954 a gallon, for a weekly rise of 2.2%,
- April heating oil HOJ25 lost 0.2%, at $2.2496 a gallon — up 3.8% for the week.
- Natural gas for April delivery NGJ25 edged up 0.1% to 3.98 per million British thermal units, but posted a weekly loss of 3%.
Analysis
Crude prices climbed on Thursday, in part driven by new sanctions on Iran and escalating Middle East tensions, as recession fears temporarily eased, he told MarketWatch.
The Trump administration announced fresh sanctions this week against Iranian energy producers and penalties against a Chinese refiner that bought Iranian crude.
“Geopolitical risk has taken center stage again, injecting a risk premium, even if it’s small, and sparking a rally in crude as some shorts get covered and others hedge for potential supply shocks,” said Innes.
However, the “macro backdrop is still murky,” he said. “Markets are keeping their eyes fixed on Ukraine ceasefire talks and watching how China’s stimulus affects its economy.”
Meanwhile, Ole Hansen, head of commodity strategy at Saxo Bank, said concerns about rising production by OPEC+, coupled with the economic impact of President Trump’s tariffs, were helping to keep a lid on prices.
“Crude prices have settled into a relatively tight range near the recent lows, weighed down by fears Trump’s aggressive trade policies may trigger a global trade war that would negatively impact global growth and demand,” Hansen said.
“In addition, the prospect of rising supply from OPEC+ next month have also been weighing on prices at a time where the U.S. administration has been talking down oil prices.”
The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+ said earlier this month they will move ahead with plans to implement a “gradual and flexible return” of 2.2 million barrels per day in voluntary production cuts starting April 1.
Given the “risk of restored OPEC+ supplies…oil’s attempt to pick itself up from year-to-date lows may be on wobbly legs,” Han Tan, chief market analyst at Exinity Group, told MarketWatch.
In other energy action, prices for natural gas logged a loss for the week.
The weekly storage report from the Energy Information Administration released Thursday revealed an increase of 9 billion cubic feet. That marked the first supply injection of 2025, which provided “some relief from heavy withdrawals in January and February,” and reduced the supply deficit relative to the five-year average, said Seth Harper, commodity analyst at Schneider Electric, in a note.
Don’t miss: Natural gas prices may predict when a Russia-Ukraine peace deal is near
Oil futures settled higher on Friday, contributing to a gain for the week as traders weighed concerns about the global economy and energy demand against support from risks to crude supplies in the Middle East.
“Oil is caught in a tug-of-war between geopolitical tailwinds and macroeconomic headwinds,” said Steven Innes, managing partner at SPI Asset Management.
marketwatch.com 03 21 2025
