Your Daily Energy Report for May 10, 2024
Posted on 2024-05-10
Crude Oil
Crude Oil futures for June settled down -$1.00 or -1.262% at $78.26. Oil prices experienced a decline of over 1% on Friday, but managed to gain over 1% for the week. This drop followed remarks from US central bank officials indicating a potential prolongation of higher interest rates, which might dampen demand from major crude consumers. Lorie Logan of the Dallas Fed raised doubts about the efficacy of current monetary policies in tackling inflation, which contributed to the downward pressure on oil prices. The prospect of higher interest rates typically leads to a slowdown in economic activity, potentially dampening oil demand. Additionally, the buildup of US fuel inventories ahead of the summer driving season added further downward pressure on oil prices. Despite an increase in crude oil imports in China during April, indicating improved demand from the world’s leading crude importer, recent US data showed a decline in consumer confidence to a six-month low due to concerns about rising prices.
Natural Gas
Natural Gas futures for June settled down -$.049 or -2.13% at $2.252. U.S. natural gas futures saw a decline on Friday, influenced by various factors affecting the LNG market. Concerns emerged regarding potential delays due to disruptions at the Golden Pass LNG project, while investor confidence was bolstered by Freeport's initiation of operations on a third train. Golden Pass LNG confirmed the possibility of interruptions on the Texas export project following reports of worker furloughs, attributing it to ongoing negotiations with their engineering, procurement, and construction (EPC) contractors. Additionally, output has decreased by 2.3 billion cubic feet per day over the past six days, hitting a preliminary low for 16 weeks at 95.5 bcfd.