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Your Daily Energy Report for May 06, 2024
Posted on 2024-05-06
Crude Oil
Crude Oil futures for June settled up $.37 or .474% at $78.48. Oil futures experienced an increase on Monday following Saudi Arabia's decision to raise June crude prices for most regions. Additionally, concerns over the likelihood of a swift agreement for a Gaza ceasefire added pressure, with Hamas insisting on an end to the conflict as a condition for releasing hostages. Israel's readiness to launch an anticipated assault in the southern Gaza Strip further dampened hopes for a cessation of hostilities. Furthermore, Saudi Arabia's upward adjustment of official selling prices for its crude in key markets such as Asia, Northwest Europe, and the Mediterranean for June indicated expectations of robust summer demand. Meanwhile, in China, the world's largest importer of crude oil, service sector activity continued to expand for the 16th consecutive month, with an acceleration in new orders and solid improvement in business sentiment, fostering optimism for sustained economic recovery.Natural Gas
Natural Gas futures for June settled up $.053 or 2.474% at $2.195. On Monday, there was a significant surge in U.S. natural gas futures, reaching their highest point in nearly four months. This increase was driven by forecasts indicating a rise in demand over the next two weeks, particularly with the reopening of Freeport LNG in Texas, leading to higher levels of feedgas to LNG export plants. The flow of natural gas to Freeport LNG's export facility in Texas hit a two-month peak on Sunday, signaling the end of a series of recent outages. Predictions from NatGasWeather suggest hot weather in Texas and the South, boosting demand from Tuesday to Thursday. However, a less optimistic outlook is projected for areas east of the Rockies in the next 5 to 15 days. These varying weather conditions are impacting both spot prices and futures, creating a volatile demand landscape.