Coquest

Your Daily Energy Report for December 30, 2025

Posted on 2025-12-30

Crude Oil

Crude Oil futures for February settled down -$.13 or -.224% at $57.95. Oil prices are down slightly on Tuesday following an uptick driven by intensifying geopolitical friction. The outlook for ending the Ukraine conflict dimmed after Russia indicated a shift in its diplomatic stance following reported incursions near its leadership's headquarters. Simultaneously, Venezuela began deactivating extraction sites in major oil-rich zones as the US enforced a restrictive blockade and conducted strategic strikes. Potential instability in the Middle East has re-emerged as a market factor, with the US cautioning Iran against restarting nuclear development under the threat of retaliatory actions. Even with these flashpoints, crude oil has depreciated roughly 20% throughout the year, the most severe drop since 2020, largely because global supply remains robust.

​​​​​Natural Gas

Natural Gas futures for February settled down -$.014 or -.351% at $3.972. Natural gas prices retreated today after failing to sustain a breakthrough above the 50-day Moving Average. This pullback took place even as the latest EIA report highlighted that current reserves have fallen into a notable storage deficit compared to the 5-year average. Investors appear to be disregarding these constrained supply levels in favor of focusing on an unseasonably warm 8-15 day weather forecast. Consequently, the prospect of diminished heating requirements is neutralizing the impact of low inventory and capping any potential price spikes. Technical indicators suggest that the market remains in a state of flux as fundamental supply risks clash with bearish atmospheric trends. Most professional hedgers are currently maintaining a "sell the rally" approach, essentially betting that mild conditions will outweigh the tightening fundamental backdrop for the foreseeable future.
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