Coquest

Your Daily Energy Report for May 5, 2025

Posted on 2025-05-05

Crude Oil

Crude Oil futures for June settled down -$1.16 or -1.990% at $57.13. Oil prices dropped on Monday, marking their lowest since January 2021. This decline followed OPEC+'s decision to increase production, raising concerns about oversupply. The group plans to boost oil output for a second consecutive month, adding 411,000 barrels per day by June. This move could potentially reintroduce up to 2.2 million barrels per day into the market by November, driven in part by Saudi Arabia's efforts to address quota violations among member countries. Meanwhile, developments in U.S.-China trade talks aimed at easing tensions were overshadowed by escalating Middle Eastern tensions. Israeli Prime Minister Netanyahu vowed retaliation against the Houthis and their backers, Iran, after a missile strike near Israel's main airport. In response, Iran's Defense Minister Nasirzadeh warned of retaliation if provoked by the U.S. or Israel.
 

Natural Gas

Natural Gas futures for June settled down -$.08 or -2.204% at $3.550. Natural gas fell today, pressured by forecasts for weaker demand and reduced flows to LNG export terminals. The decline came despite recent production cuts and expectations for stronger demand later in the week. Mild weather and low heating and cooling needs have allowed utilities to inject more gas into storage, with inventories now about 1% above the five-year average. LSEG data showed that average gas output in the Lower 48 states slipped to 103.7 billion cubic feet per day (bcfd) in early May, down from April’s record of 105.8 bcfd. LNG feedgas volumes also declined, falling to a six-week low of 14.8 bcfd, largely due to reduced flows to the Cameron LNG facility. Still, the U.S. remains the world’s leading LNG exporter, supported by solid international demand despite recent domestic slowdowns.
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