Coquest

Your Daily Energy Report for December 12, 2025

Posted on 2025-12-12

Crude Oil

Crude Oil futures for January settled down -$.16 or -.278% at $57.44. Oil prices dipped on Friday, heading for a substantial weekly loss due to continued expectations of a global surplus. The International Energy Agency reaffirmed its prediction for a record supply glut, noting that worldwide inventories have climbed to a four-year high, although its projection was slightly reduced from last month's estimate. Conversely, OPEC maintained a 2026 outlook for both global oil supply and demand, suggesting a more balanced market ahead. Earlier in the week, prices were influenced by geopolitical tensions, including the US interception of a sanctioned Venezuelan tanker, a move Caracas denounced as an “act of piracy.” Further complicating the supply picture, Ukraine struck another shadow-fleet tanker tied to Russia’s oil trade, marking the fifth such incident since late November.

​​​​​Natural Gas

Natural Gas futures for January settled down -$.118 or -2.789% at $4.113. Natural gas prices are sliding into the weekend, with the front-month contract losing over $1 since last Friday, as a significantly warmer weather pattern emerged. This shift in the weather outlook is projected to cause a sharp reduction in heating demand starting around mid-December. Despite an exchange report showing a stronger-than-expected storage draw of 177 Bcf, traders ignored the typically bullish data to focus on the bearish fundamentals. The market is overwhelmingly weighed down by strong production, which is brushing up against record levels, along with softer LNG feedgas flows. Consequently, the path of least resistance for prices remains downward unless a sudden and aggressive cold weather forecast materializes.
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