Coquest

Your Daily Energy Report for January 7, 2026

Posted on 2026-01-07

Crude Oil

Crude Oil futures for February settled down -$1.14 or -1.995% at $55.99. Oil prices slipped on Wednesday as the market balanced mounting supply expectations from Russia and Venezuela against optimistic US labor data. While ADP figures revealed a controlled recovery in private sector hiring for December, supporting the case for further Fed rate cuts and a steadier demand outlook, geopolitical developments dominated the narrative. Investors are closely parsing President Donald Trump’s announcement regarding a massive 30 to 50 million barrel crude transfer from Venezuela, alongside potential breakthroughs in US-Ukraine security talks that could ease restrictions on Russian crude exports. Despite these looming surpluses, the downward pressure was slightly mitigated by API data reporting a surprise 2.8 million barrel drop in US crude inventories, defying the anticipated build.

​​​​​Natural Gas

Natural Gas futures for February settled up $.175 or 5.224% at $3.525. Natural gas prices recovered today as Lower 48 output moderated. While record-setting LNG export flows hit 18.6 bcfd this January, domestic production dipped toward a three-week low of 108.1 bcfd following localized pullbacks in Texas and Arkansas. Despite this tightening in supply, the rally faces resistance from weather forecasts through late January that largely favor above-normal temperatures, potentially capping a sustained rise in heating demand. On the geopolitical front, traders are closely monitoring Ukraine peace talks, as any breakthrough could trigger a removal of sanctions on Russia, the world’s second-largest producer. Consequently, the market remains caught between immediate domestic production declines and the long-term prospect of a global supply influx.
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