Coquest

Your Daily Energy Report for December 29, 2025

Posted on 2025-12-29

Crude Oil

Crude Oil futures for February settled up $1.34 or 2.362% at $58.08. Oil prices grew on Monday, recouping much of the ground lost during the prior session's slump. This rally is largely driven by mounting anxiety over Middle East instability, specifically regarding Saudi air strikes in Yemen and Iran’s provocative rhetoric concerning a “full-scale war.” While these tensions simmer, Donald Trump and Volodymyr Zelenskyy have reported significant momentum in Ukraine peace talks, suggesting that a settlement framework is nearly finalized despite lingering obstacles. Furthermore, a boost in China’s projected fiscal spending for 2026 provides a bullish outlook for future demand by signaling a commitment to sustained economic acceleration. However, the energy market is still braced for its most dramatic yearly contraction since 2020, as the specter of a global surplus continues to weigh on long-term price expectations.

​​​​​Natural Gas

Natural Gas futures for January settled up $.321 or 7.352% at $4.687. Natural gas prices climbed today, maintaining momentum from last week. Heightened projections for freezing temperatures across the nation have bolstered heating degree day estimates through mid-January, prompting utility providers to aggressively secure immediate contracts. According to official EIA metrics, domestic inventories plummeted by 166 billion cubic feet during the week concluding December 19th, a reduction that significantly exceeded historical seasonal norms. This substantial drawdown has pulled reserves beneath their five-year average, as the combination of expanded LNG export infrastructure and geopolitical shifts away from Russian energy intensifies global reliance on American supply.
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