Your Daily Energy Report for June 14, 2024
Posted on 2024-06-14
Crude Oil
Crude Oil futures for July settled down -$.17 or -.216% at $78.45. Oil futures ended slightly lower on Friday following a survey indicating a decline in U.S. consumer sentiment. Despite this, prices climbed for the week as investors considered predictions for robust crude oil and fuel demand in 2024. Forecasts for strong demand helped limit losses. The EIA slightly increased its oil demand growth estimate for 2024, and OPEC maintained its forecast for strong growth of 2.2 million barrels per day (bpd). The U.S. active oil rig count, an early sign of future production, decreased this week, marking the lowest level since January 2022, according to energy services firm Baker Hughes. Additionally, Russia committed to adhering to its output obligations under the OPEC+ agreement after reporting it had surpassed its quota in May.
Natural Gas
Natural Gas futures for July settled down-$.078 or -2.636% at $2.881. Natural gas futures continued to decline on Friday as production in the Lower 48 states rose back to 100 Bcf/d. This increased supply, combined with a government storage report that met expectations, reinforced bearish market sentiment. The Mountain Valley Pipeline (MVP), extending from West Virginia to Virginia, is close to becoming operational after receiving regulatory approval. EQT, the largest natural gas producer in the U.S., has restarted production that was previously curtailed earlier this year. Some of this additional output is anticipated to be transported through the MVP. Over the weekend and into the following week, much of the U.S. is expected to experience above-normal temperatures, driving high demand for natural gas. In contrast, the cooler Northwest will see temperatures ranging from the 60s to lower 80s, leading to reduced demand in that area.