Your Daily Energy Report for June 11, 2024
Posted on 2024-06-11
Crude Oil
Crude Oil futures for July settled up $.16 or .206% at $77.90. Oil prices rose on Tuesday after the U.S. Energy Information Administration (EIA) increased its global oil demand growth projection for the year, while OPEC upheld its forecast for robust growth in 2024. The EIA adjusted its 2024 global oil demand growth estimate to 1.10 million barrels per day, up from the previous 900,000 bpd. OPEC reiterated its forecast for substantial growth in global oil demand for 2024, despite lower-than-anticipated consumption in the first quarter, citing expectations that travel and tourism will boost demand in the latter half of the year. Additionally, traders remained cautious ahead of macroeconomic data from China set to be released on Wednesday, as Saudi crude exports to China declined for the third consecutive month, adding further pressure on prices. The Energy Department is in the process of refilling the strategic petroleum reserves, which the Biden administration drew down by 180 million barrels in 2022.
Natural Gas
Natural Gas futures for July settled up $.223 or 7.674% at $3.129. U.S. natural gas futures exceeded $3/MMBtu or the first time since mid-November today, driven by new weather forecasts predicting hotter summer temperatures that could boost electricity demand. This potential rise in demand comes after producers slashed drilling budgets and output earlier in the year when prices hit record lows. The excess natural gas from the milder-than-expected winter has significantly diminished, dropping from over 40% above the five-year average in March to 25% by late May, easing storage capacity worries. In Europe, natural gas storage is on track to be replenished before winter, thanks to a surge in LNG imports compensating for reduced supplies from Russian pipelines