Coquest

Your Daily Energy Report for January 16, 2026

Posted on 2026-01-16

Crude Oil

Crude Oil futures for February settled up $.25 or .422% at $59.44. Oil prices rose on Friday, concluding a turbulent week with a net gain of more than 1%. Market participants spent the session balancing the cooling threat of an immediate US strike on Iran against the persistent geopolitical risks haunting the region. Values had previously spiked to multi-month peaks following civil unrest and military posturing that threatened Iran’s daily 3.3 million barrels-per-day output. Although prices retreated when it appeared Washington might postpone direct intervention, the continued buildup of a military presence and potential threats to the Strait of Hormuz, where a blockade could freeze 25% of global seaborne oil supplies, preserved a lingering risk premium.

​​​​​Natural Gas

Natural Gas futures for February settled up -$.025 or -.799% at $3.103. Natural gas prices dipped slightly today, balancing a looming cold snap against a persistently bearish inventory surplus. While a shift toward freezing temperatures in the central and eastern U.S. from January 20-24 offers a glimmer of support, the rally is being stifled by a lackluster EIA storage report that showed a mere 71 Bcf withdrawal. This meager draw, which fell significantly short of the five-year average, has left stockpiles roughly 3.4% above historical norms and reinforced a "sell the rally" mentality among investors. Technically, the market remains under pressure unless it can decisively clear its 50-day moving average, with many analysts keeping a close watch on the $2.991 multi-month bottom for signs of a deeper breakdown. Ultimately, while the weather forecast provides temporary relief, the long-term outlook remains weighed down by the EIA's projection of softened Henry Hub spot prices through the 2026 calendar year.
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