Coquest

Your Daily Energy Report for October 1, 2025

Posted on 2025-10-01

Crude Oil

Crude Oil futures for November settled down -$.59 or -.946% at $61.78. Oil prices fell on Wednesday, marking the lowest point in over three weeks and extending a recent three-session downturn. The decline came as OPEC+ prepared to discuss accelerating production increases, with the upcoming Sunday meeting expected to consider raising output by half a million barrels per day each month for three months. Analysts warn that supply is already running ahead of demand, with the IEA projecting record oversupply in 2026. Additional downward pressure came from U.S. output, which climbed to an unprecedented 13.6 million barrels per day in July. Still, skepticism remains that OPEC+ will fully implement the planned boost, as Saudi Arabia continues to express caution about production capacity. Russia’s ongoing limits on diesel and extended gasoline curbs provided little upward support since the measures were both anticipated and narrow in scope.
 

Natural Gas

Natural Gas futures for November settled up $.173 or 5.238% at $3.476. Natural gas prices closed higher today, reaching levels not seen since mid-July. The late-session rally was fueled by short covering. Market watchers are weighing a new factor: the partial U.S. government shutdown that began Wednesday amid a dispute between President Trump’s allies and Senate Democrats. While the EIA’s weekly storage report is still expected on schedule, traders are cautious about potential delays in future data that could increase volatility. Forecast models are also shifting, with Atmospheric G2 projecting cooler conditions in the western U.S. from October 6–10 and broader nationwide cooling from October 10–14, which could lift heating demand. Meanwhile, consumption is not as soft as last week’s models suggested, helping support the recent price rebound.
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