Coquest

Your Daily Energy Report for December 11, 2025

Posted on 2025-12-11

Crude Oil

Crude Oil futures for January settled down -$.86 or -1.471% at $57.60. Oil prices declined on Thursday, settling near a seven-week low, as the market focused heavily on projections of a growing global glut driven by increasing output from OPEC+ and American producers. The IEA slightly moderated its forecast for a record surplus for the first time since May, though it still predicts a significant global oversupply. Despite this bearish technical pressure, geopolitical tensions added volatility that failed to provide sustained price support, notably the reports of a US interception of a sanctioned Venezuelan tanker, which Caracas condemned as an “act of piracy.” Concurrently, Ukraine struck another shadow-fleet tanker tied to Russia’s oil trade, marking the fifth such attack since November amidst calls for a cease-fire.

​​​​​Natural Gas

Natural Gas futures for January settled down -$.364 or -7.922% at $4.231. Natural gas prices continued their downward trend on Thursday, marking a decline for the third time in four sessions as traders squarely focused on forecasts predicting a milder second half of December. This prevailing warm bias has taken center stage for the market, effectively undermining the impact of near-term cold and severely limiting upside momentum. Although the EIA reported a 177 Bcf withdrawal from underground storage last week, the first major draw of the season that was also slightly larger than expected, this failed to sustain a rally. This draw did help reduce the storage surplus over the five-year average to 103 Bcf from 191 Bcf the week prior, indicating some inventory tightening. While Weather projects national demand will remain high through the weekend due to frigid systems pushing in, the market is primarily pricing in the dramatic flip next week to above-normal temperatures across the majority of the Lower 48.
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