Your Daily Energy Report for May 30, 2024
Posted on 2024-05-30
Crude Oil
Crude Oil futures for July settled down -$1.32 or -1.666% at $77.91. Oil prices dropped for the second straight day on Thursday following a U.S. government report indicating weak fuel demand and an unexpected rise in gasoline and distillate fuel reserves. Although U.S. crude inventories decreased more than anticipated last week due to refiners operating at their highest rates in over nine months, gasoline and distillate stockpiles unexpectedly increased as demand fell despite higher production. Analysts had predicted a surge in fuel demand with the onset of the U.S. summer driving season on Memorial Day, May 27. However, the Energy Information Administration reported a roughly 2% decline in gasoline demand from the previous week, down to 9.15 million barrels per day. Consequently, U.S. gasoline futures dropped over 2% to a three-month low of $2.40 per gallon, and ultra-low sulfur diesel futures hit an 11-month low. The combination of weak fuel demand and increasing global oil inventories might persuade OPEC+ to continue with supply cuts during their meeting on June 2, according to delegates and analysts.
Natural Gas
Natural Gas futures for July settled down -$.094 or -3.526% at $2.572. U.S. natural gas prices continued their downward trend on Thursday, declining by more than 10% from May 22nd. According to data from the EIA, natural gas storage in the US increased by 84 billion cubic feet in the week ending May 24th, exceeding market expectations of a 77 bcf build and bringing stockpiles to 15% above the same period last year and 26% above the current five-year average. Another EIA report showed a 0.4 bcf rise in natural gas supply to the US for the week ending May 22nd, due to an uptick in Canadian imports. Conversely, consumption decreased by 0.6 bcf despite a slight increase in LNG pipeline receipts.