Coquest

Your Daily Energy Report for May 20, 2025

Posted on 2025-05-20

Crude Oil

Crude Oil futures for June settled down -$.13 or -.207% at $62.56. Oil prices continued to slip on Tuesday as investors weighed uncertainties tied to ongoing nuclear discussions between the U.S. and Iran. Tensions rose after Iran’s Deputy Foreign Minister Majid Takhtravanchi stated that negotiations would be unproductive if the U.S. insists on a full suspension of Iran’s uranium enrichment. At the same time, President Donald Trump announced that Russia and Ukraine are set to begin ceasefire talks following his conversation with President Vladimir Putin, though he suggested the U.S. might reduce its involvement in the peace process. Adding to bearish pressure on oil markets, Moody’s recent downgrade of U.S. sovereign credit raised concerns about the country's economic trajectory. Additionally, weaker-than-expected industrial and consumer activity in China, the leading global oil importer, further contributed to the cautious market tone.
 

Natural Gas

Natural Gas futures for June settled up $.065 or 1.933% at $3.427. Natural gas prices increased today, as markets responded to a dip in daily production and expectations of increased consumption in the near term. So far in May, gas output across the Lower 48 states has averaged 103.9 bcfd, down from April’s peak of 105.8 bcfd, with scheduled maintenance on major infrastructure—such as the Permian Highway operated by Kinder Morgan—contributing to the decline. Looking ahead, traders are anticipating a potential uptick in demand if hotter weather materializes in the second half of June. On the export front, gas flows to the nation’s eight leading LNG terminals have also eased, averaging 15.1 bcfd this month compared to 16.0 bcfd in April, amid maintenance activities at Cameron LNG and Cheniere’s Corpus Christi site, and Freeport LNG.
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