Coquest

Your Daily Energy Report for February 5, 2026

Posted on 2026-02-05

Crude Oil

Crude Oil futures for March settled down -$1.85 or -2.84% at $63.29. Oil prices slipped this Thursday, erasing a multi-day rally as cooling geopolitical tensions and soft economic data weighed on the market. Confirmation that Tehran and Washington will engage in direct negotiations in Oman this Friday has significantly lowered the risk premium associated with potential supply disruptions from the OPEC member. Further downward pressure came from lackluster US private jobs data, which sparked fears of a broader economic slowdown and a subsequent drop in fuel demand. While the Middle East remains a primary focus, market participants are also weighing renewed energy infrastructure strikes in Ukraine against reports that the US and Russia are reopening high-level military communication channels.

​​​​​Natural Gas

Natural Gas futures for March settled up $.044 or 1.27% at $3.509. Natural gas prices rose today as a massive storage withdrawal failed to meet the even higher market expectations. The EIA confirmed a historic 360 bcf draw for the final week of January, yet because this record-breaking dip was less than the anticipated 374 bcf, immediate concerns regarding supply scarcity began to fade. Adding to the downward momentum, updated weather forecasts indicating a transition to milder conditions have significantly dampened the outlook for heating demand in the coming weeks. On the supply side, domestic production in the Lower 48 is showing signs of resilience, rebounding to approximately 106.6 bcfd as operations recover from recent freezes. Despite inventories currently sitting about 1% below seasonal averages, the combination of rising output and consistent LNG export flows of 18.4 bcfd is helping to stabilize the market's near-term balance.
​​​​
Continue reading the full Coquest Daily Report.

---