Coquest

Your Daily Energy Report for February 25, 2026

Posted on 2026-02-25

Crude Oil

Crude Oil futures for April settled down -$.21 or -.32% at $65.42. Oil prices declined this Wednesday, marking a third straight session of declines following a massive EIA inventory report. Domestic crude stocks witnessed a staggering surge of nearly 16 million barrels, the largest weekly build in three years, vastly exceeding analyst projections and overshadowing a slight dip in gasoline inventories. Geopolitical risk premiums were also tempered by statements from Hezbollah suggesting they would avoid direct involvement in "limited" Western military maneuvers against Tehran. Despite this easing of immediate conflict fears, prices are still lingering near multi-month highs as the market awaits the outcome of tomorrow's high-stakes Geneva nuclear summit. The looming threat of a "rebuilt" atomic program and the White House’s insistence on zero enrichment remain the primary catalysts for volatility, even as physical supply levels in Cushing continue to swell.

​​​​​Natural Gas

Natural Gas futures for March settled up $.054 or 1.852% at $2.969. Natural gas prices recovered today behind a surge in LNG export demand. Pipeline deliveries to liquefaction facilities are currently averaging a record-setting 18.7 bcfd for February, though overall price gains remain tethered by an unseasonably warm meteorological outlook for the Western U.S. As the winter heating season concludes, market participants are discounting the threat of late-season freezes, particularly with Lower 48 production holding at a robust 108.7 bcfd. This high output, up from January’s 106.3 bcfd, is helping to rapidly erode the existing storage deficit, which is projected to shrink from 6% to just 1% by early March. Consequently, while global demand for American gas is at an all-time high, the combination of surging supply and mild temperatures is keeping a lid on bullish breakouts.
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