Coquest

Your Daily Energy Report for May 23, 2025

Posted on 2025-05-23

Crude Oil

Crude Oil futures for July settled up $.33 or .539% at $61.53. Oil prices rose on Friday, driven largely by growing expectations that OPEC+ will move forward with another output hike, potentially adding 411,000 barrels per day in July—a decision likely to be finalized in upcoming talks. Sentiment was further dampened by reports that the alliance may gradually phase out the remaining 2.2 million bpd of voluntary production cuts by October. Domestically, a sizable increase in U.S. crude inventories and a rise in demand for storage space added pressure to the market. However, ongoing geopolitical risks provided a floor for prices, including reports of potential Israeli military action against Iran's nuclear infrastructure and newly imposed sanctions targeting Russian oil exports. Attention also remains on the U.S.-Iran negotiations taking place in Rome, which could significantly influence the future availability of Iranian crude. For the week, WTI posted a loss of more than 1%.
 

Natural Gas

Natural Gas futures for June settled up $.081 or 2.49% at $3.334. Natural gas prices are modestly higher, aiming to finish the week relatively flat as market participants weigh recent robust inventory increases against the potential for rising demand tied to hotter summer conditions. Data from the EIA revealed a 120 Bcf addition to storage for the week ending May 16, well above the five-year norm of 87 Bcf. This substantial build continues to exert downward pressure on prices, largely reflecting milder temperatures and a surge in renewable energy output—particularly solar, which hit new records last week. Forecasts from NatGasWeather.com suggest elevated consumption heading into the weekend due to hot weather across the southern U.S., though this is being tempered by cooler conditions across northern states.
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