Coquest

Your Daily Energy Report for July 9, 2025

Posted on 2025-07-09

Crude Oil

Crude Oil futures for August settled up $.05 or .073% at $68.38. Oil prices inched up on Wednesday as market participants balanced an unexpected rise in U.S. stockpiles with growing geopolitical risks and a revised domestic output forecast. Government data showed U.S. crude inventories surged by 7.1 million barrels last week, contrary to projections for a drawdown, though declines in gasoline and distillate supplies partially offset the bearish signal. Renewed instability in the Red Sea also added upward pressure, with recent attacks—including one deadly incident involving a sunken vessel—highlighting ongoing threats to maritime trade. In a shift in outlook, U.S. regulators trimmed their oil production estimates for next year, attributing the change to weaker drilling activity amid lower prices. The UAE’s energy chief emphasized that the additional volumes are being absorbed by the market without triggering excess stockpiles, a sign of solid global demand.
 

Natural Gas

Natural Gas futures for August settled down -$.126 or -3.772% at $3.214. Natural gas prices dropped today as ample supply and elevated storage levels weighed on the market. Production in the Lower 48 has climbed to an average of 106.7 billion cubic feet per day so far in July, surpassing last month’s record pace. Underground inventories remain roughly 6% higher than the seasonal norm, with another larger-than-usual injection expected—marking the 11th such increase in the past 12 weeks. Still, demand has stayed firm amid forecasts for persistent heat through late July, boosting electricity usage for cooling. Liquefied natural gas shipments also picked up, with average feedgas deliveries to the country’s eight major export terminals reaching 15.6 bcfd as facilities recover from recent downtime.
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