Coquest

Your Daily Energy Report for February 4, 2026

Posted on 2026-02-04

Crude Oil

Crude Oil futures for March settled up $1.93 or 3.053% at $65.14. Oil prices rallied this Wednesday, nearing late-January peaks as intensifying friction between Washington and Tehran reintroduced significant risk premiums to the market. Although a diplomatic window recently appeared to be closing following the interception of drones near an American aircraft carrier, late-day reports suggest that nuclear negotiations in Oman may be back on track for Friday. Investors remain wary that any further breakdown could trigger stricter sanctions or disruptions in the Strait of Hormuz, potentially impacting major oil flows to China. On the data front, the EIA reported a 3.5 million barrel drop in domestic inventories, a figure that was bullish but far less drastic than the private API estimates released the previous evening. Despite these localized supply draws, the broader outlook remains tempered by OPEC projections of a global surplus, as refinery hubs continue to report sufficient availability of crude.

​​​​​Natural Gas

Natural Gas futures for March settled up $.154 or 4.651% at $3.465. Natural gas prices jumped today, supported by higher flows to liquefied natural gas export plants. Average gas flows to the eight largest US LNG export terminals rose to 18.3 bcfd so far in February, up from 17.8 bcfd in January, approaching December’s record of 18.5 bcfd. The US became the world’s largest LNG exporter in 2023 as global demand surged following supply disruptions linked to Russia’s 2022 invasion of Ukraine. Temperatures are expected to be mostly warmer than normal through February 19, though the Northeast will remain below average for another week. Average gas production in the Lower 48 states edged up to 106.4 bcfd in February from 106.3 bcfd in January.
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