Coquest

Your Daily Energy Report for December 3, 2025

Posted on 2025-12-03

Crude Oil

Crude Oil futures for January settled up $.31 or .529% at $58.95. Oil prices gained on Wednesday, primarily due to the immediate supply threat posed by attacks on Russian energy assets, which overcame concerns about an oversupplied market. The risk to Russian oil and fuel supply intensified following strikes on Russian tankers and oil refineries, prompting the Kremlin to issue a warning threatening retaliation against Ukrainian allies. This heightened risk premium was solidified by the failure of the US and Russia to agree on a peace deal with Ukraine, prolonging the possibility of shocks to Russian refining and shipping capacity while the US escalated threats against oil giant Venezuela. Separately, tanker activity confirmed that oil at sea from Russian producers has soared by 20% in three months as US sanctions disrupted normal delivery methods. These geopolitical factors limited the market impact of higher production from OPEC+ nations and soaring output levels from drillers in the US, Canada, and Brazil.

​​​​​Natural Gas

Natural Gas futures for January settled up $.155 or 3.202% at $4.995. Natural gas prices jumped today, having already been soaring 65% since the lows from mid-October against a backdrop of soaring export demand. The underlying demand narrative was significantly bolstered as European countries extended their shun of Russian natural gas by officially confirming the complete phase out of Russian LNG by the end of 2027. Furthermore, robust global demand was evidenced by new data confirming that US LNG exports rose 40% annually in November to 10.7 million tonnes, a massive global draw which occurred even though producers continued increasing output domestically. Adding upward domestic pressure, demand was also underpinned by key forecasts predicting a significant cold front at the start of the North American winter.
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