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Your Daily Energy Report for May 02, 2024
Posted on 2024-05-02
Crude Oil
Crude Oil futures for June settled down -$.05 or -.063% at $78.95. Oil prices dipped to a low not seen in seven weeks for the second day running on Thursday. This decline was influenced by a combination of factors including softening global demand, increasing inventories, and diminishing hopes for an imminent decrease in U.S. interest rates. Concerns over a decline in worldwide diesel consumption are adding to worries about sluggish growth in oil demand, particularly in major economies like the United States, the largest consumer of oil. Data from consultancy Insights Global revealed that gasoil stocks, which encompass diesel, surged by over 3% in Europe's Amsterdam-Rotterdam-Antwerp refining and storage center during the week ending Thursday. The U.S. employment report further compounded the bearish sentiment surrounding oil this week, as the Federal Reserve's indication of a potential delay in interest rate cuts combined with a surprisingly large increase in U.S. crude stocks reported by the EIA raised apprehensions about demand just a month ahead of the summer driving season.Natural Gas
Natural Gas futures for June settled up $.098 or 5.072% at $2.03. US natural gas futures climbed over $2 per million British thermal units on Thursday, bouncing back from losses over the previous two days. This rise was fueled by forecasts predicting increased demand next week, partially driven by a rise in feedgas to LNG export facilities. Additionally, the most recent EIA report revealed that utilities in the US injected 59 billion cubic feet (bcf) of gas into storage for the week ending April 26, 2024, surpassing market expectations of a 55 bcf increase. Currently, stockpiles stand at 34.9% above the seasonal average. Concurrently, US gas production has experienced an approximately 11% decline this year.