Coquest

Your Daily Energy Report for May 29, 2025

Posted on 2025-05-29

Crude Oil

Crude Oil futures for July settled down -$.90 or -1.455% at $60.94. Oil prices dropped on Thursday, influenced by disappointing economic indicators from the U.S. and growing anxiety over increased global oil availability. Data released from the U.S. revealed a contraction in the economy early this year, prompting worries about a possible dip in energy consumption. At the same time, Kazakhstan indicated that OPEC+ might approve a production increase during its upcoming Saturday meeting, although the extent of the adjustment remains unclear. Contributing further to concerns about demand, the International Energy Agency’s chief noted that oil usage in China is still underwhelming. On the supply front, U.S. oil stockpiles unexpectedly fell by 2.8 million barrels over the past week. Elsewhere, political turmoil in eastern Libya could lead to an export freeze after an armed group took over its national oil company.
 

Natural Gas

Natural Gas futures for July settled down -$.035 or -.984% at $3.522. Natural gas prices dropped today, pressured by declining usage and reduced flows to LNG terminals. In May, gas deliveries to the country's eight major LNG facilities averaged about 15.1 Bcfd—down from April’s peak of 16.0 bcfd—largely due to scheduled upkeep at sites such as Cameron, Corpus Christi, and Sabine Pass, along with brief disruptions at Freeport. Further maintenance activity, particularly at Sabine Pass, is anticipated in June. Concurrently, overall U.S. natural gas production has edged down to approximately 105.0 bcfd this month, slightly off from last month's high, as springtime pipeline servicing continues—most notably on Kinder Morgan's Permian Highway. Looking ahead, forecasts indicate hotter-than-average conditions through mid-June, driving up air conditioning demand.
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