How Cold Is It? The Energy Report 01/03/2025

The question is not how cold it is, but how cold is it going to be.

Fox Weather is reporting that America’s coldest weather so far this winter will send temperatures tumbling in nearly 40 states. The main push of dangerously cold air will move in starting Monday next week.

The latest from Fox Weather says that “Americans across the eastern half of the U.S. prepare to be blasted by rounds of frigid arctic air that are expected to send temperatures tumbling as far as Florida and Texas. The FOX Forecast Center said cold air originating from Canada is currently infiltrating the Plains region and is expected to move east.”

Fox Weather says that not only are people east of the Mississippi River and in the Northern Tier having to deal are dealing with colder temperatures Friday, but this is also just a preview of even colder air that’s expected next week.

Natural Gas prices, which surged over 20% to start the week, are pulling back as we get closer to this coming artic event.

Natural gas prices are retreating on some hopes that the arctic blast that is poised to hit Texas and big swaths of the United Staes might not be as bad as originally feared.  Yet if the forecasts flip colder natural gas and heating oil will flip higher.

So, the fate for natural gas will come down not only to the holiday delayed EIA natural gas report but also the late day weather models.  Which is no doubt Chilling.

Reuters is reporting that “U.S. energy firms likely pulled a larger-than-usual 124 billion cubic feet (bcf) of natural gas from storage last week, according to the average estimate of analysts in a Reuters poll released on Thursday. That compares with a withdrawal of 35 bcf during the same week a year ago and a five-year (2019-2023) average decrease of 104 bcf for this time of year.

For natural gas the weather in Texas is going to be key as oil and gas fields are at risk of freezing next week if some of the colder forecast hold up we could see a significant drop in production and that could lead to some tightness and supplies pipelines could also freeze which could be a real headache unless we know the wind power doesn’t work well in these icy cold conditions.

Fox Weather says that NOAA forecasters expect several waves of cold air to impact the U.S. through mid-January, putting the month on track to be one of the coldest months experienced in several years.

During the height of the cold weather, more than 200 million Americans are expected to see below-average temperatures, which will reach the Interstate 10 corridor and the Gulf Coast.

Oil prices seem to ignore a bid build in gasoline and distillate products as more than likely it was impacted by the holiday weekend. There is nothing like you’re in-tax positioning to mess up a weekly petroleum inventory report.

The EIA Reported that U.S. commercial crude oil inventories fell by 1.2 million barrels from the previous week.  At 415.6 million barrels,  that puts U.S. crude oil inventories are about 5% below the five-year average for this time of year.

Gasoline inventories increased miraculously by 7.7 million barrels but are slightly below the five year average for this time of year.

Distillate fuel inventories also dramatically increased by 6.4 million barrels last week, even with that incredible leap are about 6% below the five-year average for this time of year.

President Biden’s energy legacy is in a shambles.

People at the top of this administration that spent a lot of money with little results. Oil Demand and global emissions at records and the American deficit at an all-time high.

President Biden is the most anti fossil fuel president in the history of the country and the US oil and gas industry is not sad to see him go

President Biden being the kind of vindictive person he is taking one last shot reports are saying that President Biden to salvage his legacy plans to issue a decree to ban new offshore oil and gas development in some US coastal waters.

Of course, people at the voting booths soundly rejected President Biden and his energy policies. So this is also a shot at the will of the American People

President Biden has had a vindictive energy policy trying to reverse all the progress that President Trump tried to make when it came to oil and gas production.

In the meantime, he wasted billions of dollars of taxpayer money on green energy projects it will never come to fruition

He empowered Iran and Venezuelan dictators.   History will not judge Biden Policies kindly.  A man blinded by ideology and vindictiveness and with no understanding how the real energy world works.

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