Coquest

Your Daily Energy Report for June 04, 2025

Posted on 2025-06-04

Crude Oil

Crude Oil futures for July settled down -$.56 or -.883% at $62.85. Oil prices slipped today as Saudi Arabia indicated a potential significant production increase. This move has raised concerns about a potential surplus in global oil supply. Reports suggest that Saudi Arabia is advocating for OPEC+ to raise output by at least 411,000 bpd starting in August, possibly extending into September, aiming to bolster market share during the peak summer demand period. This proposal follows an earlier announcement of a production increase for July, which was largely anticipated. In the previous month, Saudi Arabia led the rise in OPEC production but held back from fully implementing its allocated quota. Traders are maintaining caution amidst ongoing trade tensions, highlighted by President Trump's remarks on challenges in negotiations with China's leadership, which are contributing to uncertainties regarding global demand prospects.
 

Natural Gas

Natural Gas futures for July settled down -$.006 or-.161% at $3.716. Natural gas prices fell slightly today amid softening demand forecasts and a drop in LNG export volumes. Shipments from the nation's eight key LNG facilities have averaged roughly 13.8 Bcfd in early June—down from 15.0 bcfd in May and a peak of 16.0 bcfd in April. The slowdown is largely attributed to scheduled maintenance, including activity at Cheniere Energy’s export sites. At the same time, analysts anticipate another above-average weekly storage build, which would mark the seventh consecutive week of strong injections and comes with inventories already running 4% above seasonal norms. On the supply front, gas output from the Lower 48 dipped modestly to 104.0 bcfd in June so far, slightly lower than the 105.2 bcfd seen in May and down from March’s all-time high of 106.3 bcfd.
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