Coquest

Your Daily Energy Report for June 06, 2025

Posted on 2025-06-06

Crude Oil

Crude Oil futures for July settled up $1.21 or 1.909% at $64.58. Oil prices continued to rise on Friday, marking their first weekly gain in three weeks with an increase of more than 6.5%. The increase followed renewed optimism as trade discussions resumed between US President Donald Trump and China’s President Xi Jinping, which boosted expectations for stronger global demand. Additionally, Canada initiated direct trade talks with the US, further supporting market sentiment. Despite these developments, the oil market remains volatile due to geopolitical tensions, including potential US sanctions on Venezuela and concerns about Israeli actions against Iranian infrastructure. On the supply side, Saudi Arabia adjusted its July crude prices for Asia, aiming to balance increasing demand while maintaining production discipline within the framework set by OPEC+.
 

Natural Gas

Gas futures for July settled up $.107 or 2.91% at $3.784. Natural gas prices climbed today, largely supported by a drop in domestic output. Supplies from the Lower 48 have averaged about 104.0 billion cubic feet per day this month—lower than May’s 105.2 bcfd and well below the all-time high seen in March. Expectations for hotter-than-normal temperatures into mid-June also contributed to upward pressure on prices by signaling stronger demand. Still, futures dipped over 1% on Thursday after a government report revealed a storage increase of 122 billion cubic feet for the final week of May—surpassing projections of 111 bcf. It marked the seventh week in a row with injections above seasonal norms, pushing stockpiles roughly 4.7% higher than the five-year average. On the export side, gas deliveries to major U.S. LNG terminals slipped to 13.8 bcfd in early June from 15.0 bcfd in May, as routine spring maintenance—particularly at Cheniere’s facilities—reduced flow capacity.
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