Coquest

Your Daily Energy Report for May 8, 2025

Posted on 2025-05-08

Crude Oil

Crude Oil futures for June settled up $1.84 or 3.169% at $59.91. Oil prices rose on Thursday, buoyed by growing optimism over potential progress in upcoming trade discussions between the U.S. and China—two major influencers of global oil demand. Market sentiment improved following reports that U.S. Treasury Secretary Scott Bessent is scheduled to meet with China’s top economic official in Switzerland on May 10 to address the ongoing trade dispute. Although prolonged tensions between the two nations have fueled concerns about weakening crude demand, recent diplomatic developments have offered a measure of reassurance. Additional support came from the announcement of a new U.S.- U.K. trade deal. However, expectations that OPEC+ will raise output may temper further price increases, while geopolitical uncertainties—such as the implications of a possible U.S.-Iran nuclear agreement—continue to play a significant role in shaping market dynamics.
 

Natural Gas

Natural Gas futures for June settled down -$.029 or -.801% at $3.592. Natural gas prices slipped slightly amid volatile trading after the latest storage data aligned with forecasts, confirming a growing surplus compared to the five-year norm. According to the EIA, inventories climbed by 104 billion cubic feet last week, bringing the total to 2,145 Bcf—30 Bcf higher than the average for this time of year from 2020 to 2024. The increase slightly exceeded analysts’ expectations, which averaged 101 Bcf in a Wall Street Journal poll. Forecasts from NatGasWeather for the period of May 7–13 suggest generally mild conditions across much of the U.S., limiting near-term heating or cooling demand. A mix of storm systems and scattered rainfall is keeping daytime temperatures mostly within the 60°F to 80°F range.
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