Coquest

Your Daily Energy Report for June 25, 2025

Posted on 2025-06-25

Crude Oil

Crude Oil futures for August settled up $.55 or .854% at $64.92. Oil prices rose on Wednesday, rebounding after a sharp selloff that resulted in the steepest decline since 2022. Market participants remain closely attuned to the situation in the Middle East, where a U.S.-negotiated truce between Iran and Israel appears to be holding steady. In a notable diplomatic pivot, President Trump indicated that the U.S. would not oppose continued Chinese purchases of Iranian oil—despite long-standing sanctions—suggesting a willingness to ease pressure on Tehran to support regional stability. However, uncertainty persists following an early U.S. intelligence assessment suggesting that recent strikes on Iranian nuclear facilities have only temporarily set back the country's atomic ambitions. On the supply front, the EIA reported a much larger-than-expected drop in domestic crude inventories, with stockpiles shrinking by 5.836 million barrels last week—marking the fifth straight weekly decline.
 

Natural Gas

Natural Gas futures for July settled down -$.131 or -3.704% at $3.406. Natural gas prices continued to slip today, as increasing production levels and robust storage additions weighed on the market. Output across the Lower 48 has averaged 105.5 billion cubic feet per day in June—slightly higher than May’s pace, though still trailing March’s peak due to seasonal maintenance earlier in the year. Although last week brought hotter-than-normal conditions, analysts anticipate another solid storage build, with inventories remaining roughly 6% above the five-year seasonal norm. The persistent storage surplus, which has expanded since mid-April, continues to be a key factor in the downward pressure on prices. On the export side, LNG flows fell to 14.1 bcfd this month, retreating from 15.0 bcfd in May and a record 16.0 bcfd in April.
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