Coquest

Your Daily Energy Report for January 8, 2026

Posted on 2026-01-08

Crude Oil

Crude Oil futures for February settled up $1.77 or 3.161% at $57.76. Oil prices surged on Thursday after snapping a two day slide. This recovery was largely ignited by a surprising 3.8 million barrel draw in US crude inventories, which defied forecasts for a build and significantly bolstered US physical balances. Market jitters regarding Venezuelan flows returned to the forefront as Washington tightened sanctions enforcement by impounding tankers and signaled a desire for tighter oversight on oil sales. While President Trump’s remarks on moving massive quantities of South American crude represent a longer term supply risk, the immediate bearish impact was muted by significant logistical constraints and execution hurdles. Although rising stocks at Cushing and builds in gasoline and distillates limited the session’s upside, softer US labor data supported demand expectations by keeping an accommodative Fed outlook in play.

​​​​​Natural Gas

Natural Gas futures for February settled down -$.118 or-3.348% at $3.407. Natural gas prices retreated today as rising daily output and projections for unseasonably temperate conditions over the coming weeks weighed on the market. Despite a potential for a short-lived cold snap later this month, the prevailing consensus suggests that heating demand will lag behind historic averages through January 23. The most recent EIA storage report offered a counter-bullish signal, revealing a 114 billion cubic feet extraction for the week ending Jan. 2, which significantly outpaced both last year's figure and the five-year mean. Sustained momentum in the export sector remains a critical pillar of support, with LNG feedgas flows maintaining an average of 18.5 bcfd throughout the month.
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