Coquest

Your Daily Energy Report for May 22, 2025

Posted on 2025-05-22

Crude Oil

Crude Oil futures for July settled down -$.37 or -.601% at $61.20. Oil prices dipped on Thursday, under pressure from reports suggesting that OPEC+ may increase output as early as July. Sources indicate a possible hike of around 411,000 barrels per day is under consideration, though no agreement has been finalized. Adding to the bearish sentiment, U.S. crude stockpiles unexpectedly grew by 1.3 million barrels last week, attributed to a rise in imports and waning fuel consumption. Traders are also keeping an eye on the upcoming fifth round of U.S.- Iran nuclear discussions scheduled for the weekend, which have helped ease concerns about potential supply disruptions in the Middle East—especially after earlier speculation about Israeli military action targeting Iranian nuclear sites. With the possibility of higher supply ahead, uncertainty remains over whether demand will be strong enough to absorb it, particularly as rising Treasury yields in the U.S. raise questions about the broader economic outlook.
 

Natural Gas

Natural Gas futures for June settled down -$.115 or -3.414% at $3.253. Natural gas prices fell today after government data revealed a storage build that exceeded expectations. Stockpiles increased by 120 bcf last week, topping the anticipated 115 bcf and significantly outpacing both the 78 bcf added during the same period last year and the five-year norm of 87 bcf. The larger build was attributed to unseasonably mild weather, which kept heating and cooling needs subdued. Total storage now stands at 2.375 trillion cubic feet—still 12.3% below last year’s mark but 3.9% above the five-year average. On the supply side, domestic production has also edged lower to 103.9 bcfd, down from April’s record-setting 105.8 bcfd, partly due to ongoing maintenance on major pipelines such as Kinder Morgan’s Permian Highway.
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