Coquest

Your Daily Energy Report for May 19, 2025

Posted on 2025-05-19

Crude Oil

Crude Oil futures for June settled up $.20 or .32% at $62.69. Oil prices dropped on Monday, pressured by disappointing economic indicators from China and a recent downgrade of the U.S. credit rating. New data revealed a slowdown in China’s factory activity and consumer spending, raising doubts about the momentum of its post-pandemic recovery. Market sentiment was further dampened after Moody’s lowered the U.S. sovereign credit rating by one level on Friday, citing rising budget deficits and increasing debt-servicing costs. These developments added to investor unease regarding future economic stability. Despite the downward pressure, oil price declines were somewhat cushioned by the ongoing ambiguity surrounding the Iran-U.S. nuclear negotiations, which carry implications for global oil supply. In other geopolitical news, U.S. President Trump announced plans to speak with Russia’s President Putin later today about efforts to end the conflict in Ukraine.
 

Natural Gas

Natural Gas futures for June settled down -$.221 or -6.629% at $3.113. Natural gas prices fell today, marking their lowest level since April. This decline was driven by reduced short-term demand exacerbated by warmer-than-usual weather expected through late May. The mild temperatures have curtailed both heating and air conditioning usage, thereby lowering overall gas consumption. Additionally, decreased LNG exports due to seasonal maintenance at export terminals have alleviated pressure on domestic gas supplies. Meanwhile, gas production across the Lower 48 states averaged 103.6 bcfd in May, down from 105.8 bcfd in April. The EIA reported a significant increase in gas storage levels, with utilities injecting 110 bcf of gas for the week ending May 9, reflecting subdued demand for heating and cooling.
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