Coquest

Your Daily Energy Report for August 27, 2025

Posted on 2025-08-27

Crude Oil

Crude Oil futures for October settled up $.90 or 1.423% at $64.15. Oil prices climbed on Wednesday, bouncing back from the decline seen the day before, after U.S. government data showed sharper-than-expected inventory drawdowns. Nationwide crude stocks dropped by 2.39 million barrels to 418.3 million, while supplies at Cushing, the main delivery hub, fell by 838,000 barrels. Gasoline inventories slipped by 1.2 million barrels—less than analysts projected—while distillate inventories declined by 1.8 million barrels against expectations for a build. The numbers point to steady fuel demand, even as worries linger that tariffs could curb consumption in the months ahead. Heightening trade tensions, Washington raised import duties on Indian goods to 50%, the highest tariff the U.S. has imposed on an Asian country, in retaliation for India’s ongoing purchases of Russian crude. Despite this, Indian refiners signaled they would continue their buying practices.
 

Natural Gas

Natural Gas futures for September settled up $.15 or 5.521% at $2.867. Natural gas prices rose today, bouncing back from sharp losses earlier in the week as bargain hunters stepped in and strong LNG exports offered support. Shipments to U.S. liquefaction facilities have averaged 15.9 bcfd so far in August, slightly above July’s 15.6 bcfd but just under the April peak of 16.0 bcfd. Weather models also added a bullish tilt, projecting 155 cooling degree days over the next two weeks versus the seasonal norm of 135. Still, overall demand across the Lower 48 is forecast to decline from 111.1 bcfd this week to roughly 104.3 bcfd by mid-September as summer consumption tapers off. Supply remains robust, with August output averaging 108.5 bcfd, surpassing July’s record 107.8 bcfd.
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