Your Daily Energy Report for May 14, 2024
Posted on 2024-05-14
Crude Oil
Crude Oil futures for June settled down -$1.1 or -1.39% at $78.02. On Tuesday, oil prices closed lower following U.S. data that raised concerns about sustained high interest rates. However, the threat of supply disruptions from Mideast tensions and Canadian wildfires provided support. Anticipation surrounds upcoming U.S. consumer price data, expected Wednesday, which could influence the timing of rate adjustments impacting economic expansion and oil consumption. Further, if inflation surpasses expectations, it may exacerbate fears of overheating, potentially prompting the Fed to raise rates again, thereby impeding growth. Meanwhile, the OPEC maintained its optimistic outlook for global oil demand growth in 2024, suggesting the possibility of an even stronger world economy than previously anticipated. Additionally, energy markets monitored wildfires in remote areas of western Canada, which could disrupt oil supplies and consequently bolster prices.
Natural Gas
Natural Gas futures for June settled down -$.037 or -1.554% at $2.344. On Tuesday, natural gas futures in the US experienced a decline from the previous session's four-month peak. This was attributed to forecasts indicating reduced demand over the upcoming fortnight and apprehensions regarding an excess supply of gas in storage, estimated to be 31% above seasonal norms. Despite these factors, there has been a surge in gas shipments to LNG export terminals, particularly as Freeport LNG's facility in Texas recommenced operations following maintenance. Moreover, daily production witnessed a decrease of 1.5 billion cubic feet per day (bcfd) over the past 48 hours, reaching a preliminary figure of 96.5 bcfd on Tuesday.