Your Daily Energy Report for May 17, 2024
Posted on 2024-05-17
Crude Oil
Crude Oil futures for June settled up $.83 or 1.048% at $80.06. WTI crude futures climbed on Friday, poised to end the week on a positive note. This rise was supported by a drop in US crude oil inventories and increased optimism about potential interest rate cuts by the US Federal Reserve later this year. According to EIA data, US crude stockpiles decreased by 2.508 million barrels last week, marking the second consecutive weekly decline and surpassing the anticipated reduction of 1.362 million barrels. On the global front, the International Energy Agency reduced its forecast for this year’s global demand growth by 140,000 barrels per day to 1.1 million. In contrast, the latest OPEC report revealed that member countries exceeded their production cap by 568,000 barrels per day in April, yet upheld strong demand projections of 2.25 million barrels per day for 2024 and 1.85 million barrels per day for 2025.
Natural Gas
Natural Gas futures for June settled up $.131 or 5.251% at $2.626. On Friday, natural gas futures rose significantly, approaching the critical 200-day moving average of $2.769. This increase was driven by lower storage levels, reduced production, and expected demand increases due to localized heatwaves in the United States. Dry gas production in the Lower 48 states was reported at 98.3 bcf per day on Thursday, reflecting a 2.1% decrease compared to the previous year. At the same time, demand in these states was 64.4 bcf per day, a 2.7% drop from the previous year. LNG exports from U.S. terminals reached 13.2 bcf per day, showing a 4.0% rise from the previous week, highlighting strong international demand. Latest weather predictions indicate cooler temperatures for the eastern U.S., potentially reducing natural gas consumption.