Coquest

Your Daily Energy Report for June 16, 2025

Posted on 2025-06-16

Crude Oil

Crude Oil futures for July settled down -$.91 or -1.252% at $71.77. Oil prices slipped on Monday, easing back after Friday’s sharp rally of 7%. The pullback came amid reports that Iran was signaling a willingness to dial back tensions with Israel and reengage in nuclear discussions. Earlier in the session, prices briefly spiked to $77.49 following Israeli strikes on key Iranian energy sites, including a major gas facility and an oil storage area. However, market concerns appeared to ease as the situation stabilized and critical infrastructure remained largely unaffected. Vessel activity through the Strait of Hormuz—a vital corridor for global oil shipments—saw only a slight reduction, with 111 tankers recorded on June 15 versus 116 a few days earlier, indicating limited impact on crude flows. While the outlook turned more stable, geopolitical risk hasn’t fully faded; Iran has warned it could block the Strait, a chokepoint for roughly 20% of the world’s oil supply, which could send prices soaring past $100 if realized.
 

Natural Gas

Natural Gas futures for July settled up $.167 or 4.664% at $3.748. Natural gas prices rose today, mirroring strength across the broader energy complex as geopolitical risks in the Middle East intensified. Over the weekend, Israel reportedly targeted two Iranian gas facilities, heightening market concerns over potential disruptions to regional energy infrastructure. Domestically, the rapid pace of LNG export growth has sparked worries about tightening supply conditions, which could push prices higher in the coming months. In the near term, forecasts indicate above-average temperatures through late June across much of the U.S., likely increasing electricity demand for air conditioning. This rise in cooling needs may further strain natural gas inventories. Meanwhile, production in the Lower 48 has edged down to 105.0 billion cubic feet per day so far this month.
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