Coquest

Your Daily Energy Report for January 6, 2026

Posted on 2026-01-06

Crude Oil

Crude Oil futures for February settled down -$1.19 or -2.04% at $57.13. Oil prices dipped on Tuesday as investors gauged the global supply fallout from American maneuvers in Venezuela. Although that nation possesses the largest proven oil reserves on the planet, its current market footprint is minimal, meaning any export bottlenecks are unlikely to trigger a major price shock. Protracted underinvestment has severely hindered Venezuelan production, which currently accounts for less than 1% of the world's total output. Some market observers argue that output could eventually expand if stability returns and the US manages to revitalize the country’s energy infrastructure, though this would add volume to a market that is already well-supplied. Simultaneously, Saudi Arabia reduced its pricing for Asian buyers for a third month, while OPEC+ stood by its Q1 strategy to freeze output increases in response to surplus fears and lackluster demand.

​​​​​Natural Gas

Natural Gas futures for February settled down -$.173 or -4.911% at $3.350. Natural gas prices have extended their retreat into a fifth straight day as unseasonably high temperatures for January curb the appetite for heating demand. While the broader energy complex is reacting to the geopolitical shock of the U.S. capture of Nicolás Maduro, natural gas remains largely insulated from the "Venezuela risk premium," focusing instead on a growing domestic supply glut. Analysts point out that dry gas production is rebounding toward 110 Bcf/d, further pressuring a market that has already surrendered over 30% of its value since early December. Despite the current gloom, the long-term floor remains bolstered by LNG exports, which achieved a record-breaking 100 million tons in 2025 and are projected to expand further throughout 2026.
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