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Your Daily Energy Report for June 03, 2025
Posted on 2025-06-03
Crude Oil
Crude Oil futures for July settled up $.89 or 1.424% at $63.41. Oil prices increased on Tuesday, continuing a two-day rally driven by heightened geopolitical risk and tightening global supply outlooks. Recent talks between Russia and Ukraine failed to ease tensions following a spike in conflict, offering little hope for resolution. At the same time, Iran appeared ready to dismiss a recent offer from the U.S. aimed at resolving long-standing nuclear issues, citing that it doesn’t sufficiently address Tehran’s concerns over uranium enrichment. Separately, a wildfire in western Canada disrupted some energy operations, adding to supply constraints. Meanwhile, the OPEC+ alliance opted to stick with its current production strategy for July, signaling no major change in output despite the tightening market.Natural Gas
Natural Gas futures for July settled up $.028 or .758% at $3.722. Natural gas prices are up slightly after Monday’s advance, supported by a combination of lower production levels and expectations for hotter weather in the coming weeks. Although rising temperatures are beginning to lift demand prospects—particularly for power generation—larger-than-normal weekly storage injections are keeping the market from making stronger upward moves. Forecast models show a steady buildup of heat across the country during the second half of June, with highs ranging from the 70s and 90s across the northern states, and the 80s to triple digits across the South, according to an industry weather service. Despite this, the impact of increased wind generation is also playing a role in tempering natural gas demand. After a period of weak wind output, conditions have shifted, and wind energy is now expected to remain robust over the next few days, reducing reliance on gas-fired electricity during peak cooling demand.
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