Coquest

Your Daily Energy Report for May 15, 2025

Posted on 2025-05-15

Crude Oil

Crude Oil futures for June settled down -$1.53 or -2.423% at $61.62. Oil prices dropped on Thursday, as fears of an oversupplied market dragged prices lower. Market sentiment was influenced by reports suggesting that Iran may be willing to reach an agreement with the U.S. in exchange for easing sanctions —a move that could potentially bring more Iranian barrels back to global markets. Saudi Arabia expressed strong backing for the diplomatic discussions, voicing optimism about a successful outcome. Adding to the bearish tone, new government figures showed an unexpected increase of 3.4 million barrels in U.S. crude inventories last week, shortly after industry data indicated an even larger 4.3 million barrel build. On the production front, OPEC lowered its projection for supply growth from countries outside its alliance in 2025, now expecting an increase of 800,000 barrels per day versus the earlier 900,000 bpd estimate.
 

Natural Gas

Natural Gas futures for June settled down -$.13 or -3.723% at $3.362. Natural gas prices fell today, reaching their lowest level in two weeks, as expectations for near-term consumption softened and LNG export volumes declined. Forecasts pointing to above-average temperatures through the latter part of May have lowered heating needs, while the mild conditions also suppress air conditioning demand —both factors contributing to reduced gas usage. At the same time, deliveries to liquefied natural gas export sites have tapered off from April's peak, with ongoing seasonal maintenance playing a key role. On the supply side, gas production across the Lower 48 states has eased to roughly 103.6 bcfd in May, down from 105.8 bcfd in April. In addition, government data showed a significantly larger-than-usual build in natural gas storage last week.
​​​​
Continue reading the full Coquest Daily Report.

---