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Your Daily Energy Report for May 08, 2024
Posted on 2024-05-08
Crude Oil
Crude Oil futures for June settled up $.61 or .778% at $78.99. Oil prices saw a slight uptick on Wednesday following the release of U.S. oil storage data, revealing a larger-than-anticipated decrease in crude reserves as refineries boosted production in anticipation of increased summer travel. U.S. crude stockpiles dropped by 1.4 million barrels to 459.5 million barrels for the week ending May 3, surpassing market forecasts by a small margin. Speculation about a potential ceasefire in Gaza has contributed to a recent dip in oil prices, with some experts noting a reduction in the risk premium associated with oil. Additionally, cautious sentiments regarding potential supply cuts from the Organization of the Petroleum Exporting Countries (OPEC) and its partners ahead of a June 1 policy meeting have also influenced market dynamics. Russian Deputy Prime Minister Alexander Novak stated on Tuesday that there have been no talks about increasing oil output by OPEC+.Natural Gas
Natural Gas futures for June settled down-$.02 or -.906% at $2.187. U.S. futures for natural gas experience a decline, ending a four-session streak of gains just ahead of the EIA's upcoming weekly storage report, which is expected to once again highlight concerns about surplus inventories. Analysts anticipate an increase of 89 billion cubic feet in underground storage for last week, bringing the total to 2,573 Bcf and slightly widening the surplus over the five-year average compared to the previous week's 642 Bcf. This week, Germany announced a halt on operations at its three nuclear power plants, opting instead to invest billions in new natural gas facilities alongside renewable energy initiatives, shifting away from nuclear energy. Investor sentiment toward European gas has turned more optimistic, mirroring the urgency observed earlier in 2022.