Coquest

Your Daily Energy Report for February 2, 2026

Posted on 2026-02-02

Crude Oil

Crude Oil futures for March settled down -$3.07 or -4.708% at $62.14. Oil prices fell this Monday, the most significant single-day contraction in half a year. This retreat from last week's rally was primarily triggered by a sudden deflation of geopolitical risk premiums following diplomatic overtures between Washington and Tehran. With both Donald Trump and Iranian leadership signaling a preference for negotiations over escalation, the "war premium" that bolstered prices throughout last month rapidly evaporated. The bearish sentiment was further compounded by a widespread retreat in industrial commodities and a firmer US dollar, which overshadowed the OPEC+ decision to maintain current output quotas through March. Ultimately, the absence of a tangible supply shock allowed the market to refocus on a well-supplied global landscape, effectively capping the six-week rally.

​​​​​Natural Gas

Natural Gas futures for March settled down -$1.12 or -25.706% at $3.237. Natural gas prices plummeted today, completely reversing the double-digit gains recorded just days prior. This dramatic sell-off was fueled by a significant shift in weather forecasts, with NOAA predicting above-average temperatures through the middle of the month that will likely dampen demand expectations. While localized freezing conditions continue to strain the southern power grid, the broader national outlook suggests a sharp reduction in heating and power generation demand. This volatility follows the February contract expiration at multi-year highs, which was driven by previous storm-related production disruptions. Despite the March contract showing initial strength after a bullish government storage report, the current warming trend has forced a massive correction in the front-month price.
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