Uncertainty permeates after tense White House meeting
March 3, 2025
Energy prices closed down on Friday and down on the month. Prices fell to the low on Friday afternoon after a tense meeting between President Trump, Vice President Vance, and Ukraine President Zelensky. The mineral rights deal expected to be executed between Ukraine and the US did not happen on Friday, leaving the market uncertain.
The possibility of the war between Ukraine and Russia continuing should add risk premium back into the market. US tariffs on Canada and Mexico starting March 4th also add uncertainty.
The Baker Hughes Rig Count had oil rigs down 2 to 486 and last year at this time there were 506 oil rigs in operation.
Trade sources and analysts said China’s imports of Russian Far East crude and Iranian crude are set to rebound in March as non-sanctioned tankers are used to replace vessels under the US embargo. A sanctions package on January 10th targeted more than 140 oil tankers, or about 42% of Russia’s total seaborne crude exports, and caused an increase in freight rates.
The EIA reported that US crude oil production in December increased by 95,000 bpd to a record high of 13.491 million bpd, up from 13.396 million bpd in November and a record 13.436 million bpd in October. Product supplied of crude oil and petroleum increased by 198,000 bpd to 20.433 million bpd in December. Product supplied of distillates increased by 51,000 bpd to 3.727 million bpd in December, the highest level since October 2024, while product supplied of finished motor gasoline fell by 14,000 bpd to 8.794 million bpd in December, the lowest level since February 2024.