Coquest

Your Daily Energy Report for January 5, 2026

Posted on 2026-01-05

Crude Oil

Crude Oil futures for February settled up $1.00 or 1.745% at $58.32. Oil prices nudged upward on Monday as investors evaluated stable supply projections in the aftermath of Nicolas Maduro’s seizure. This significant military development followed a targeted US forces weekend raid, which came after sustained blockades and strikes against Venezuelan oil production and export infrastructure. Even though the country possesses the largest proven crude oil reserves globally, persistent underinvestment has traditionally funneled its output toward Russia, Iran, and China. The inherent heavy and sour grade of this resource continues to trade at a steep discount to WTI, presenting significant hurdles for US companies due to the fiscal and technical complexity of extraction. Concurrently, the OPEC+ alliance has reaffirmed its commitment to hold output levels steady throughout the initial quarter of 2026.

​​​​​Natural Gas

Natural Gas futures for February settled down -$.095 or -2.626% at $3.523. Natural gas prices tumbled today, reaching a depth untouched since late October. This downward pressure is fueled by forecasts of unseasonably warmer temperatures slated to dominate the eastern two-thirds of the nation during January 7–11 before reaching the north-central US from January 12–16. Investors are also pivoting to analyze the energy-specific fallout of the US attack on Venezuela and the high-profile seizure of Nicolás Maduro. The geopolitical stakes are immense given that the nation controls approximately 200 trillion cubic feet of gas, a figure comprising over 60% of Latin America’s total reserves. Beyond crude, there is a wary eye on whether further conflict might jeopardize LNG trade routes and critical shipping channels, creating new volatility for natural gas.
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