Coquest

Your Daily Energy Report for July 1, 2025

Posted on 2025-07-01

Crude Oil

Crude Oil futures for August settled up $.34 or .522% at $65.45. Oil prices rose on Tuesday, swinging between gains and losses as traders looked ahead to an upcoming policy move by OPEC+. The alliance is widely expected to approve an additional 411,000 barrels per day of production for August, building on similar increases in the preceding three months. If enacted, the total expansion for 2025 would amount to 1.78 million barrels per day, accounting for more than 1.5% of worldwide oil consumption. Analysts view the move as both a corrective measure for members that exceeded prior quotas and a calculated effort by Saudi Arabia to reclaim market share from U.S. shale and other competitors. Meanwhile, cooling geopolitical tensions have diminished the geopolitical risk embedded in oil prices. Adding to market caution, Treasury Secretary Scott Bessent indicated some nations could still be hit with higher tariffs after the July 9 deadline if talks fail to deliver concrete agreements.
 

Natural Gas

Natural Gas futures for August settled down -$.041 or -1.186% at $3.415. Natural gas prices dropped today, reaching their lowest level in six weeks. The decline came amid expectations of higher output and relatively mild weather conditions. While forecasts still call for above-average heat through mid-July, extreme temperatures are not anticipated, which should support robust storage additions and temper demand. Production in the Lower 48 states averaged 105.9 billion cubic feet per day in June, slightly above May's 105.2 bcfd. At the same time, LNG shipments from the nation's eight main export facilities eased to 14.4 bcfd, down from 15.0 bcfd in the previous month. On the geopolitical front, market risk subsided somewhat following President Trump’s announcement of a ceasefire between Israel and Iran, reducing concerns tied to the conflict that began on June 13.
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