Coquest

Your Daily Energy Report for July 31, 2025

Posted on 2025-07-31

Crude Oil

Crude Oil futures for September settled down -$.74 or -1.057% at $69.26. Oil prices declined on Thursday, stepping back from recent highs over the past six weeks and concluding a three-day upward trend. Traders weighed geopolitical tensions and the latest US inventory figures. Market sentiment remains cautious amid uncertainties surrounding President Trump’s renewed efforts for a swift resolution to the conflict in Ukraine. The President proposed significant tariffs on Russia’s trade partners within a tight timeframe and cautioned China against continued oil purchases, which added to market pressure. Unexpectedly, US crude inventories surged by 7.7 million barrels last week due to reduced exports, sharply contrasting with expectations of a decrease. Meanwhile, gasoline stocks fell by 2.7 million barrels, surpassing forecasts and suggesting robust demand during the peak summer driving season, partially offsetting the negative impact of the crude inventory increase.
 

Natural Gas

Natural Gas futures for September settled up $.061 or 2.003% at $3.106. Natural gas prices ended the day with modest gains after a volatile trading session. Support came from a rebound in LNG feedgas usage and expectations for continued heat during the second week of August. Government data revealed that storage levels increased by 48 billion cubic feet last week, outpacing market projections of a 38 bcf build. Despite Thursday's uptick, natural gas prices have declined more than 12% over the course of July, halting a two-month upward trend, as supply has consistently outstripped consumption. LSEG data showed daily production in the Lower 48 averaged 107.5 billion cubic feet in July, surpassing the previous month’s high of 106.4 bcfd. This surge in output, paired with short-term forecasts for cooler weather, has dampened demand from the power generation sector.
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