Coquest

Your Daily Energy Report for May 28, 2025

Posted on 2025-05-28

Crude Oil

Crude Oil futures for July settled up $.95 or 1.56% at $61.84. Oil prices increased on Wednesday, with prices shifting as traders looked ahead to an upcoming OPEC+ meeting. The group is expected to approve a July output increase of around 411,000 barrels per day, following a similar move for June. Still, Russian Deputy PM Alexander Novak noted that the proposal hadn’t been formally discussed within the group. On the geopolitical front, President Trump criticized Russian President Putin over stalled talks on Ukraine, hinting that new sanctions could be introduced soon. At the same time, Washington tightened restrictions on Chevron’s Venezuelan operations, allowing asset maintenance but prohibiting oil exports or project expansion. Meanwhile, EU officials are reviewing U.S. investment flows after Trump delayed tariff plans on European products, keeping trade tensions in focus.
 

Natural Gas

Natural Gas futures for June settled down -$.194 or -5.709% at $3.204. Natural gas prices slipped today, weighed down by technical-driven selling and lackluster short-term consumption expectations. Weather projections remain a key factor suppressing momentum, with cooler-than-average temperatures anticipated through June 3 across much of the eastern United States—including key demand hubs like Texas and the Southeast. This pattern is expected to dampen residential and commercial energy use, placing further strain on near-term demand. Despite these headwinds, market sentiment appears split as ample supply and continued strong injections into storage—typical for the spring shoulder season—are creating downward pressure. As a result, the market remains range-bound, caught between soft fundamentals in the immediate term and more bullish prospects further out.
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