Coquest

Your Daily Energy Report for January 27, 2026

Posted on 2026-01-27

Crude Oil

Crude Oil futures for March settled up $1.76 or 2.903% at $62.39. Oil prices rose on Tuesday, as a punishing US winter storm forced nearly 2 million barrels per day of domestic production offline. This massive supply disruption, accounting for roughly 15% of the nation's total output, was compounded by reports of operational failures at several Gulf Coast refineries struggling with frozen infrastructure and power grid instability. While the persistent geopolitical risk premium remains elevated following the arrival of a US aircraft carrier strike group in the Middle East, the rally faced headwinds from a recovering Kazakhstan energy sector. Consequently, the market is locked in a tug-of-war between immediate North American supply deficits and the broader expectation of stabilizing global flows.

​​​​​Natural Gas

Natural Gas futures for February settled up $.154 or 2.265% at $6.954. Natural gas prices defied a morning dip to finish the session in positive territory, extending a historic 117% rally. While Commodity Weather Group forecasts offered a glimpse of a potential thaw in Texas and Louisiana, the market pivoted back to bullish territory as Appalachia and the Northeast remained locked in a deep freeze. Domestic production began a sluggish recovery toward 93.5 bcfd, yet the massive 50 bcfd loss from frozen wellheads continues to outpace the rate of restoration, keeping the supply-demand balance dangerously tight. This underlying scarcity was reinforced as LNG feedgas demand surged back to 13.7 bcfd, signaling that the export sector is aggressively competing with domestic utilities for every available molecule. The day’s close was further cemented by a Level-1 emergency from PJM Interconnection, where the Energy Department has been forced to prioritize residential heating over industrial power consumption.
​​​​
Continue reading the full Coquest Daily Report.

---