Coquest

Your Daily Energy Report for December 15, 2025

Posted on 2025-12-15

Crude Oil

Crude Oil futures for January settled down -$.62 or -1.079% at $56.82. Oil prices dropped on Monday, as persistent oversupply pressures overshadowed mounting geopolitical risks. The market remains saturated due to elevated inventories and rising output from major producers like the US, Brazil, and Guyana, supporting expectations that production growth will continue to exceed demand well into 2026. Demand-side concerns were amplified by weaker signals from China, specifically slower industrial activity and an increasing transition to renewables for electricity generation. Furthermore, progress in Ukraine peace negotiations contributed to the downward pressure, as a potential ceasefire would diminish the risk premium related to Russian supply disruptions. Therefore, the limited price support offered by US actions against Venezuela or tensions involving Iran in the Gulf of Oman was insufficient to significantly tighten the current global supply.

​​​​​Natural Gas

Natural Gas futures for January settled down -$.101 or -2.456% at $4.012. Natural gas prices continued to drop for a third consecutive day. The recent decline is largely attributed to nationwide weather forecasts indicating above-average temperatures leading into the Christmas holiday, significantly curbing crucial heating demand. Simultaneously, the pressure on prices remains intense due to near-record production levels, estimated near 109.7 Bcf/d in December, and the current ample storage supplies. While the latest EIA data confirmed a robust, higher-than-expected draw of 177 Bcf from underground storage, this first major seasonal withdrawal failed to generate any bullish support. Countering the domestic bearishness, US LNG exports remained strong, hitting a new record in November with the majority of the supply heading to the European market.
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