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Your Daily Energy Report for February 3, 2026
Posted on 2026-02-03
Crude Oil
Crude Oil futures for March settled up $1.07 or 1.722% at $63.21. Oil prices rose this Tuesday, halting a two-day slide fueled by shifting geopolitical dynamics and fresh trade discourse. Sentiment pivoted toward potential nuclear negotiations between Washington and Tehran, especially as Trump hinted at imminent dialogue and military shifts signaled a cooling of regional friction. Simultaneously, traders weighed a prospective US-India arrangement where tariff relief hinges on the rejection of Russian oil, a strategy reflected in India's recent three-year low in crude imports from Moscow. This shift has ballooned the global volume of unsold Russian barrels, adding to the supply overhead. Against this backdrop, OPEC+ committed to a status-quo production strategy for March, ensuring the market remains well-supplied despite the typical seasonal demand lull.
Natural Gas
Natural Gas futures for March settled up $.074 or 2.286% at $3.311. Natural gas prices stabilized today following Monday's aggressive selloff, the sector remains under pressure as revised weather forecasts projecting a warming trend have significantly cooled recent bullish momentum. This shift in the outlook has allowed U.S. gas production to recover to 111.6 bcf/day, as rising temperatures mitigate previous freeze-offs and push output back toward record high levels. Although the market is bracing for a massive storage draw in Thursday’s federal data due to last week's Arctic blast, the immediate focus has shifted to the anticipated drop in heating demand. Technically, the commodity faces a bearish hurdle after dropping below its 50-day and 200-day moving averages, levels that now act as firm resistance against today's attempted recovery. Traders are currently balancing this technical weakness against the lingering winter volatility, keeping watch on whether supply growth will to outpace the seasonal demand.
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