Coquest

Your Daily Energy Report for January 21, 2026

Posted on 2026-01-21

Crude Oil

Crude Oil futures for March settled up $.26 or .431% at $60.62. Oil prices rose this Wednesday after President Donald Trump clarified that his pursuit of Greenland would focus on diplomatic acquisition rather than military intervention. The benchmarks had dipped nearly 1.5% earlier in the session as market participants fretted over heightened transatlantic friction and the potential for new US tariffs to choke off global economic growth. While a cooling of rhetoric at Davos provided temporary relief, the long-term outlook remains clouded by the European Parliament's decision to indefinitely freeze the ratification of a major trade deal in protest of the Greenland pressure. Consequently, while geopolitical "de-escalation" allowed for a daily rebound, the persistent inventory surplus projected for the coming year continues to act as a significant bearish anchor.

​​​​​Natural Gas

Natural Gas futures for February settled up $.968 or 24.776% at $4.875. Natural gas prices continued their rise today, compounding a massive surge from earlier in the week as atmospheric models shifted toward a historic deep freeze. A powerful Arctic freeze is now projected to descend across the continent, dragging temperatures at least 8°F below seasonal norms for the Midwest and Mid-Atlantic while pushing sub-zero conditions into the heart of Texas. This extreme weather forecast has ignited fears of massive freeze-offs, with potential supply losses of up to 10 bcfd across the Appalachia, Permian, and Haynesville basins. Such a significant disruption to gas production could rapidly deplete the nation's storage surplus, especially as high heating requirements force operators to pivot fuel away from LNG export facilities to prioritize domestic needs. Ultimately, the combination of record-breaking demand and the threat of wellhead failures has left the market bracing for its most volatile stretch of the 2026 winter.
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