In the first week of April, Brent oil futures for the Front Month on the ICE market remained above $74 per barrel during the first three sessions. On April 2, the futures reached a weekly peak settlement price of $74.95 per barrel, marking the highest level since February 21. However, by Thursday and Friday, prices experienced significant declines of about 6.5% each day. As a result, on Friday, April 4, the settlement price dropped to $65.58 per barrel, reflecting an 11% decrease compared to the previous Friday and the lowest price since August 21, 2021.
The decline in oil prices was driven by concerns regarding global oil demand, particularly due to trade tensions stemming from new tariff announcements in the United States and retaliatory actions from countries like China. Additionally, OPEC+ announced a larger-than-expected production increase starting in May, and US oil reserves saw an uptick, further contributing to the downward pressure on prices.
Turning to the TTF gas futures market for the Front Month on the ICE, prices reached a weekly peak settlement price of €42.45 per MWh on April 1. However, similar to oil prices, gas futures began to decline as the week progressed, and by April 4, they hit their weekly low of €36.90 per MWh. This marked a 9.1% drop from the previous Friday and represented the lowest price since September 25, 2024. Concerns over the potential effects of US tariff policies on global demand, coupled with rising temperatures, contributed to the downward trend in gas prices.
In the CO2 emissions market, the futures for the December 2025 reference contract on the EEX market reached a weekly high of €69.86 per ton on April 1. However, following a downward trend for the remainder of the week, the price fell to €63.82 per ton on April 4, marking a 7.2% decrease from the previous Friday and the lowest level since October 22, 2024.
Overall, the first week of April saw substantial price fluctuations across oil, gas, and CO2 emissions markets, largely influenced by trade tensions, rising temperatures, and shifting supply-demand dynamics, AleaSoft reports.
