Coquest

Your Daily Energy Report for February 20, 2026

Posted on 2026-02-20

Crude Oil

Crude Oil futures for March settled down -$.04 or -.06% at $66.39. Oil prices dipped this Friday, as the White House issued a strict 15-day ultimatum for Tehran to finalize a nuclear accord. This geopolitical tension is magnified by the most significant U.S. military buildup in the region since 2003, placing Iran's daily output of 3 million barrels and the critical Strait of Hormuz transit lanes under direct threat. Market sentiment was further buoyed by a rally in equities following the Supreme Court’s decision to invalidate recent executive tariffs, signaling a potential easing of trade-related headwinds. On the fundamental front, the rally found firm support in government data showing a massive 9 million barrel decline in domestic crude inventories, the most aggressive weekly draw since September.

​​​​​Natural Gas

Natural Gas futures for March settled up $.051 or 1.702% at $3.047. Natural gas prices recovered today as a sudden cold front targeting the Northeast sparked a momentary demand surge. Despite this Friday bounce, the commodity closed the week with a 4% net loss, weighed down by a significant expansion in Lower 48 production which recently touched 108.7 bcfd. The market's bearish undertone was reinforced by the EIA’s reported 144 bcf withdrawal, a figure that lagged behind both historical averages and the previous year's depletion levels. While a 6% storage deficit persists, the rapid approach of the shoulder season and expectations for a warm March suggest that inventories will normalize quickly. Even with LNG feedgas demand remaining near record highs at 18.6 bcfd, the structural supply overhang and shifting weather maps continue to cap long-term upside potential.
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