Your Daily Energy Report for June 17, 2024
Posted on 2024-06-17
Crude Oil
Crude Oil futures for July settled up $1.88 or 2.396% at $80.33. Crude oil futures saw a significant rally on Monday, with prices jumping nearly $2 per barrel to reach their highest settlement in over a month, building on last week's gains. This upward momentum was driven by investors becoming more optimistic about the demand outlook. Recent reports from OPEC+, the International Energy Agency, and the U.S. Energy Information Administration boosted confidence that oil demand will improve in the second half of 2023, helping to draw down inventories. This positive sentiment followed four consecutive weeks of declines for the benchmark oil contracts. Economic data from China, a major oil importer, also supported expectations of stronger demand, as manufacturing investment showed robust 9.6% growth in the January-May period, according to government figures released on Monday. However, some other Chinese data points, such as industrial output, lagged behind expectations, painting a mixed picture.
Natural Gas
Natural Gas futures for July settled down -$.093 or -3.228% at $2.788. Natural gas futures experienced a fourth consecutive session of decline on the first day of the week. Despite predictions of the hottest weather conditions in nearly half a century, prices fell amid rising production levels and reduced demand from LNG facilities. The recent commencement of operations at the Mountain Valley Pipeline contributed to supply concerns, exerting downward pressure on the market. Robust output from producers like EQT, one of the nation's major gas companies, which had ramped up production in response to higher prices witnessed in the previous month, further weighed on sentiment. Conversely, the anticipated surge in electricity demand for cooling purposes due to the forecasted heatwave until the end of June is expected to drive up natural gas consumption by power generators.