Coquest

Your Daily Energy Report for December 5, 2025

Posted on 2025-12-05

Crude Oil

Crude Oil futures for January settled up $.41 or .687% at $60.08. Oil prices increased on Friday, successfully maintaining a two-week high and remaining on track for a notable weekly gain, fundamentally driven by the ongoing geopolitical risk premium. Traders continued to watch intently for any potential US move in Venezuela after President Donald Trump signaled imminent action against the oil giant, with Rystad Energy warning that any escalation could threaten the country’s 1.1 million bpd of crude output. Prices were also supported by the lack of progress in US talks in Moscow over the Ukraine war, a stalemate that lessened the near-term prospects for restoring Russian supply, even as Ukraine continued targeting Russian energy infrastructure. Furthermore, the financial environment added upward momentum, fueled by expectations of a US rate cut, which is broadly seen as a measure to stimulate economic activity and boost oil demand.

​​​​​Natural Gas

Natural Gas futures for January settled up $.226 or 4.464% at $5.289. Natural gas prices gained today due to prevailing colder-than-normal weather forecasts that are significantly increasing heating demand across the eastern U.S.. This strong seasonal tailwind is driving the market despite the bearish signal from the recent EIA storage draw of only 12 bcf, which was far below the five-year average of 43 bcf and suggests that inventories remain comfortable. While dry gas output has reached 111.5 bcf/day, a 2.25-year high in active rigs maintains supply confidence, the overall demand picture is robust, as demonstrated by the lower-48 consumption hitting 118.1 bcf/day, a substantial 12% year-over-year jump. Ultimately, the short-term outlook remains bullish, heavily dependent on whether the sustained cold weather can maintain strong demand pressure.
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