Coquest

Your Daily Energy Report for May 27, 2025

Posted on 2025-05-27

Crude Oil

Crude Oil futures for July settled down -$.64 or -1.04% at $60.89. Oil prices dropped on Tuesday, ahead of an upcoming OPEC+ meeting focused on potential oil output increases. Reports suggest OPEC+ may endorse a 411,000 barrels per day boost for July, continuing a trend of increased supply following a similar rise in June. However, Russian Deputy PM Alexander Novak indicated that the group had not yet formally addressed the output hike. Simultaneously, concerns linger over possible new US sanctions on Russia after drone strikes in Ukraine, which could affect supply from a major global producer. On the trade front, US President Trump extended talks with the EU until July 9, alleviating fears of tariffs that could dampen fuel demand, with Brussels accelerating negotiations following Trump's recent criticisms.
 

Natural Gas

Natural Gas futures for June settled up $.064 or 1.92% at $3.398. Natural gas prices rose today as traders assessed the balance between supply and demand. The EIA reported a storage increase of 120 bcf for the week ending May 16, surpassing the projected 115 bcf and well above the five-year average of 87 bcf. The larger-than-expected build was attributed to moderate weather, which kept energy usage for heating and cooling relatively low. Gas in storage now totals 2.375 trillion cubic feet—12.3% lower than the same time last year, but still 3.9% higher than the typical five-year level. On the export side, liquefied natural gas shipments averaged 15.1 bcfd so far in May, a decline from April’s 16.0 bcfd, as several facilities including Cameron LNG, Cheniere’s Corpus Christi, and Freeport LNG faced maintenance or brief operational issues. Domestic production also edged down to 103.9 bcfd from a record-setting 105.8 bcfd in April, partly due to pipeline work on infrastructure.
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