Coquest

Your Daily Energy Report for August 5, 2025

Posted on 2025-08-05

Crude Oil

Crude Oil futures for September settled down -$1.13 or -1.705% at $65.16. Oil prices continued their fall on Tuesday, extending a four-day decline. Concerns mounted over a surplus in supply following OPEC+'s decision to ramp up production. This move reverses a previous cut of 2.2 million barrels per day by eight member nations in 2023. Meanwhile, heightened US pressure on India to halt Russian oil imports, aimed at encouraging Moscow to negotiate with Ukraine, raised worries about potential supply disruptions. President Donald Trump announced plans on Monday to significantly increase tariffs on Indian goods due to their ongoing Russian oil purchases. These developments unfold against a backdrop of uncertain global demand, influenced by trade tensions and recent economic indicators showing weakness. Separately, BP announced a major oil and gas find off Brazil’s coast—the company’s biggest discovery in a quarter-century—bolstering its pivot back toward hydrocarbons.
 

Natural Gas

Natural Gas futures for September settled up $.078 or 2.66% at $3.010. Natural gas prices rose today, moving back above $3 per MMBtu and approaching levels last seen in April. The rally was supported by a dip in daily production, stronger demand from LNG export facilities, and forecasts pointing to hotter-than-average temperatures extending through the second half of August. The anticipated heat is likely to drive sustained use of air conditioning, boosting power sector gas consumption—which already fuels over 40% of the nation’s electricity. Even with elevated summer usage, robust output in prior months has kept storage levels healthy, currently sitting about 7% above the seasonal average. Meanwhile, developing storm systems in the Atlantic pose additional risks to energy infrastructure, adding further momentum to the market.
​​​​
Continue reading the full Coquest Daily Report.

---