Your Daily Energy Report for June 4, 2024
Posted on 2024-06-04
Crude Oil
Crude Oil futures for July settled down -$.97 or -1.307% at $73.25. Oil prices dropped by over $1 per barrel on Tuesday due to doubts regarding an OPEC+ decision to increase supply later this year, amid signs of weak demand in the global market. On Sunday, OPEC+ decided to extend most of their oil output cuts until 2025 but allowed for gradual unwinding of voluntary cuts from eight members starting in October. This planned unwinding has raised concerns about potential oversupply, especially as traders are already worried about high interest rates slowing down global economic activity. Persistent negative indicators from major economies like the U.S., China, and Europe suggest that their oil demand might remain weaker than anticipated for the rest of the year. Additionally, the American Petroleum Institute will publish inventory data on Tuesday afternoon, followed by the U.S. government's inventory and product supplied data on Wednesday.
Natural Gas
Natural Gas futures for July settled down -$.17 or 6.168% at $2.586. Natural gas futures fell on Tuesday, following a surge of over 6% on Monday. Warmer than normal temperatures are expected across most of the U.S., boosting demand through Thursday. Reports on Monday indicated Norway was experiencing delivery issues with its gas supply to Europe, causing gas prices to spike during Europe's refueling season for the upcoming fall and winter. However, the resolution of pipeline issues in Norway has eased supply concerns, leading to a 4% drop in Europe's benchmark gas price. Exports remain below the December 2023 peak of 14.7 bcfd due to maintenance at various facilities. Additionally, concerns about high production levels and sufficient supply continue to exert downward pressure.