Coquest

Your Daily Energy Report for June 11, 2025

Posted on 2025-06-11

Crude Oil

Crude Oil futures for July settled up $3.17 or 4.878% at $68.15. Oil prices slipped on Wednesday, after President Trump revealed progress on a preliminary agreement with China, renewing optimism for increased energy consumption from the world’s top two economies. The proposed deal reportedly involves China providing rare earth materials and the U.S. easing certain restrictions on Chinese students, though it has yet to be finalized. While the announcement eased some trade-related concerns, analysts remain cautious about the actual effect on global energy demand. In the background, geopolitical tensions stayed elevated as Iran warned of potential action against U.S. military sites if nuclear negotiations break down, adding a layer of supply risk. At the same time, OPEC+ is moving forward with plans to lift production by 411,000 bpd in July, part of its phased rollback of previous output limits. U.S. inventories, however, saw a sharper-than-expected drop of 3.64 million barrels last week.
 

Natural Gas

Natural Gas futures for July settled down -$.026 or -.736% at $3.507. Natural gas prices ended slightly lower in a narrow trading range as the market awaited the upcoming storage report. Analysts surveyed by the Wall Street Journal anticipate the EIA will announce a 109 billion cubic foot injection, which would widen the surplus above the five-year seasonal norm to 139 Bcf, up from 117 Bcf the prior week. If confirmed, this would mark the seventh straight week of storage builds exceeding 100 Bcf. Meanwhile, proposed new EU sanctions targeting Moscow could severely impact Russian gas exports to Europe. The sanctions, if fully endorsed by EU member states, might effectively end the Nord Stream 2 pipeline project between Russia and Germany.
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