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Your Daily Energy Report for June 02, 2025
Posted on 2025-06-02
Crude Oil
Crude Oil futures for July settled up $1.73 or 2.846% at $62.52. Oil prices rose on Monday, reacting to OPEC+'s decision to gradually increase production in July. Led by Saudi Arabia, the group announced a planned boost of 411,000 barrels per day, continuing their steady monthly increments. This move tempered concerns about a sudden supply surge. Additionally, US rig counts fell for the fifth consecutive week in May to their lowest levels since 2021, further supporting prices. Despite increased overall supply, the combination of reduced US production and OPEC+'s consistent strategy is contributing to market stability. Although crude prices have declined by over 12% this year, some producers caution that prolonged low prices could eventually tighten supply.Natural Gas
Natural Gas futures for July settled up $.247 or 7.166% at $3.694. Natural gas prices bounced back from the previous week’s decline, driven by forecasts indicating above-average temperatures after early June. The anticipated heatwave is expected to increase air conditioning use, boosting demand for electricity—and, in turn, natural gas. At the same time, output slipped to 105.0 billion cubic feet per day in May, down from April’s all-time high of 105.8 bcfd, largely because of seasonal maintenance, including work on the Permian Highway pipeline operated by Kinder Morgan. The rebound was further supported by a 3% rise in oil prices after OPEC+ chose to stick with its planned production hike for July. On the flip side, feedgas flows to U.S. LNG export plants declined to 15.1 bcfd from a peak of 16.0 bcfd in April due to ongoing maintenance and brief operational disruptions at sites such as Freeport, Sabine Pass, Cameron, and Corpus Christi.
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