Oil Prices Close at 1-Month Low as US Pauses Tariffs on Mexico

Oil prices edged up in volatile trade on Monday but closed at a one-month low on the expiration of a higher-priced contract, as the market digested U.S. President Donald Trump's planned imposition of tariffs on Canada, Mexico and China.

Concerns over imports from two of the main crude suppliers to the U.S. boosted prices by over $1 a barrel earlier in the session before Trump paused the new tariffs on Mexico for one month as Mexico agreed to reinforce its northern border to stem the flow of illegal drugs, particularly fentanyl. Continue reading here (Source: Reuters).

Tariffs Will Lift US Gas Prices Within Days

The tariff on products imported from Canada will cost Americans 15 cents a gallon or more at the gas pump relatively soon. That’s not as much of a price hike as we could have seen.

Tariffs on US imports from Canada and Mexico were announced Saturday by the Trump administration and are set to take effect on goods arriving here Tuesday, as President Donald Trump followed through on a campaign promise by taking action against America’s two biggest trading partners. But then on Monday he put the Mexican tariffs on hold. The tariffs, a tax on goods crossing the border, will affect the price Americans will pay for all manner of imports from the countries, including cars, lumber and agricultural products. But gasoline and other energy products could be among the first to see the expected price increases. Continue reading here (Source: CNN).

OPEC+ Won't Change Oil Production Plans

Despite pressure from President Trump and a recent rise in oil prices, the OPEC+ group has said it won't change its current plan to begin gradually unwinding the cuts from April.

The Joint Ministerial Monitoring Committee (JMMC), the OPEC+ panel reviewing policy and markets and potentially recommending actions to the group’s ministers to take, made its decision during its Monday meeting.

No changes had been expected after anonymous delegates to Reuters ahead of the JMMC meeting. Continue reading here (Source: OilPrice).

Natural Gas Spot Prices Fell Across Key Regional Trading Hubs in 2024

Average natural gas spot prices at most major trading hubs in the Lower 48 states declined in 2024 compared with 2023 in real terms, according to data from Natural Gas Intelligence.

Inflation-adjusted natural gas prices in the Northeast at Algonquin Citygate and Eastern Gas South averaged 32 cents per million British thermal units (MMBtu) and 6 cents/MMBtu lower in 2024, respectively, and western prices at Northwest Sumas and SoCal Citygate averaged $2.51/MMBtu and $4.55/MMBtu lower compared with 2023, respectively. In West Texas, prices at the Waha Hub near Permian Basin production activities traded below zero for 42% of trading days in 2024 as natural gas production from the Permian Basin outpaced available pipeline takeaway capacity.

The Matterhorn Express Pipeline, capable of carrying 2.5 billion cubic feet per day from the Permian Basin to demand centers on the Texas coast, entered service in October 2024 and helped clear some of the regional production bottleneck. Since mid-November the price at the Waha Hub has been more than zero. Continue reading here (Source: US Energy Information Administration).

US Base Oil Prices Remain Stable Despite Rising Crude Oil

The US base oil prices exhibited a notable period of price stability throughout January 2025. The rising feedstock crude oil prices and the anticipation of potential tariff increases might have created an environment of uncertainty which could drive base oil prices upwards, a delicate balance of supply and demand dynamics ultimately prevailed.

While the group Il base oil prices maintained immense stability during January 2025, this trend is likely to stay in the upcoming weeks amid the base oil orders slow down significantly leading up to the year-end holidays and are not expected to rebound until mid-January or early February. Continue reading here (Source: Chem Analyst).

US Propane Prices Have Traded Higher So Far This Winter Compared With Last Winter

U.S. wholesale and retail propane prices have been higher so far this winter heating season (October–March) than during the same period a year ago, largely because of colder weather in January and higher exports, according to data from our State Heating Oil and Propane Program. Prices have been higher despite relatively strong propane inventories heading into this winter heating season. Continue reading here (Source: US Energy Information Administration).