Coquest

Your Daily Energy Report for December 4, 2025

Posted on 2025-12-04

Crude Oil

Crude Oil futures for January settled up $.72 or 1.221% at $59.67. Oil prices climbed on Thursday, extending the prior session's advance. Specific military action involved Ukraine struck the Druzhba oil pipeline in Russia’s Tambov region, an event constituting the fifth attack on the route supplying Hungary and Slovakia, although the pipeline operator and Hungary’s oil company said flows remained normal. Adding to the persistent risk premium, US envoys ended talks with the Kremlin without any breakthroughs, with President Trump saying it was unclear what comes next, while the US also escalated threats against Venezuela’s oil sector. Still, the upward momentum was capped by evidence of weak demand and potential oversupply in the market. This bearish sentiment was strongly reinforced by EIA data showing US crude inventories rose 574,000 barrels last week, which was accompanied by concurrent increases in gasoline and distillate stocks.

​​​​​Natural Gas

Natural Gas futures for January settled up $.068 or 1.361% at $5.063. Natural gas prices rose today, initially retreating but then recovering to end the day positive following the release of storage data that was higher than market expectations. The specific EIA report showed a withdrawal of only 12 bcf, significantly less than the consensus forecast of an 18 bcf draw during the third week of the withdrawal season. Still, futures were nearly 70% higher since October lows due to a persistent environment of soaring export demand, primarily driven by European countries who have committed to a complete phase out of Russian LNG by the end of 2027. While further price support is provided by forecasts of a cold front bringing lower temperatures to the Northeast and Great Lakes at the start of the North American winter.
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