Coquest

Your Daily Energy Report for May 12, 2025

Posted on 2025-05-12

Crude Oil

Crude Oil futures for June settled up $.93 or 1.524% at $61.95. Oil prices rose on Monday, following an agreement between the U.S. and China to ease many of the trade tariffs previously imposed on one another. This development hinted at a de-escalation in trade tensions between the top two oil-consuming nations, improving the outlook for global demand. As part of the agreement, the U.S. scaled back tariffs on Chinese goods from 145% to 30%, while China cut import duties on American products from 125% to 10%, with both adjustments set to last three months. However, this bullish momentum faced some headwinds as the OPEC+ alliance indicated plans to boost production more aggressively during May and June. Additionally, ongoing diplomatic efforts between the U.S. and Iran, including recent talks in Oman, introduced uncertainty, as a potential nuclear deal could bring more Iranian oil to market.
 

Natural Gas

Natural Gas futures for June settled down -$.149 or -3.926% at $3.646. Natural gas prices fell today, as ample supply outweighed market expectations for increased energy use due to warmer weather. According to the latest figures from the Energy Information Administration, domestic storage levels increased by 104 billion cubic feet for the week ending May 2, well above the typical five-year gain of 79 Bcf —a result attributed to mild temperatures curbing cooling demand. Nonetheless, updated projections from key forecasters pointed to a potentially hotter summer across North America, which could lift demand for electricity used in air conditioning, sustaining recent upward price momentum. Broader energy markets also found support after the U.S. announced a temporary reduction in tariffs on Chinese imports, signaling a step back from prolonged trade tensions.
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