Coquest

Your Daily Energy Report for May 21, 2025

Posted on 2025-05-21

Crude Oil

Crude Oil futures for July settled down -$.46 or -.742% at $61.57. Oil prices gave up earlier gains and slipped on Wednesday following an unexpected increase in U.S. crude inventories. According to the EIA, domestic stockpiles rose by 1.328 million barrels, contrary to predictions of a 1.85 million barrel reduction. Inventories of gasoline and distillates also climbed, surprising analysts who had anticipated declines. Earlier in the session, prices had reached as high as $62.73 amid heightened geopolitical risks, including reports suggesting Israel might be planning strikes on Iran's nuclear sites—fueling concerns about possible supply disruptions from the Middle East. Market jitters were further amplified by the possibility of Iranian retaliation that could impact transit through the Strait of Hormuz. At the same time, ceasefire discussions involving the U.S. and Russia over the Ukraine conflict have hit an impasse, adding another layer of uncertainty to the global outlook.
 

Natural Gas

Natural Gas futures for June settled down -$.059 or -1.722% at $3.368. Natural gas prices eased on Wednesday, retracing part of the previous session’s strong rally as traders turned their attention to the upcoming storage data due Thursday, which is expected to reveal the largest injection of the year so far. Short-term forecasts have tempered bullish sentiment, with NatGasWeather projecting cooler-than-average conditions across much of the Midwest and Eastern U.S. through May 27, likely keeping overall demand subdued. The latest storage figures from the EIA showed a 110 bcf build last week—right in line with projections but significantly above the five-year norm of 83 Bcf. Current storage levels now sit 2.6% higher than the five-year average, although still 14.6% below the same time last year.
​​​​
Continue reading the full Coquest Daily Report.

---