Coquest

Your Daily Energy Report for March 2, 2026

Posted on 2026-03-02

Crude Oil

Crude Oil futures for April settled up $4.21 or 6.282% at $71.23. Oil prices spiked this Monday, as escalating hostilities in the Middle East sparked fears over the Strait of Hormuz, which handles approximately 20% of global seaborne supply. Maritime carriers have begun proactively avoiding this vital chokepoint following a series of mutual strikes between U.S.-Israeli forces and Iranian military targets throughout the region. Adding to the supply anxiety, Saudi Aramco was forced to suspend operations at its massive Ras Tanura refinery to evaluate damage from a targeted drone strike. On the production side, OPEC+ concluded its Sunday summit with a modest 206,000 bpd output hike for April, ending a three-month freeze on supply. However, because this increase fell significantly short of the 411,000 to 548,000 bpd range previously debated, the market remains highly reactive to a persistent geopolitical risk premium.

​​​​​Natural Gas

Natural Gas futures for April settled up $.101 or 3.533% at $2.960. Natural gas prices jumped today, as deepening Middle Eastern hostilities fueled anxiety over global supply stability. This price action was triggered by a cycle of military exchanges between U.S.-Israeli forces and Iranian targets, leading to a critical production suspension at Qatar Energy’s Ras Laffan facility. Maritime logistics are currently compromised as the Strait of Hormuz remains largely impassable, prompting major shippers to bypass the chokepoint that typically facilitates 20% of the world’s LNG commerce. Although regional officials claim the passage is accessible, the risk-averse shift in tanker routes is expected to redirect significant global demand toward U.S. export terminals. Consequently, the domestic market is tightening, with current reserves maintaining a 0.3%.
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