Your Daily Energy Report for June 24, 2024
Posted on 2024-06-24
Crude Oil
Crude Oil futures for August settled up $.90 or 1.115% at $81.63. Oil prices rose on Monday due to expectations of increased summer driving demand and concerns over supply disruptions caused by geopolitical tensions in the Middle East and drone incidents affecting Russian refineries. Additionally, European Union nations reached an agreement on Monday to impose new sanctions on Russia related to its conflict in Ukraine, which includes restrictions on Russian LNG transfers within the EU for onward shipment. The depreciation of the U.S. dollar also contributed to the attractiveness of dollar-denominated commodities like oil to buyers using other currencies. Traders are now anticipating Wednesday's inventory report to gauge ongoing strong gasoline demand following significant declines in U.S. crude and gasoline inventories last week.
Natural Gas
Natural Gas futures for August settled up $.112 or 3.949% at $2.948. Natural gas futures jumped on Monday, driven by forecasts of hotter weather and increased cooling demand. This increase came after a two-day drop to the lowest point since June 4. Meteorologists expect temperatures across the Lower 48 states to remain above average through at least July 9, leading to higher use of gas-powered generators for air conditioning. Gas flows to the seven major U.S. LNG export facilities have held steady at 12.9 bcfd in June, consistent with May's levels but below the December 2023 record of 14.7 bcfd. This decrease is due to ongoing maintenance at several Louisiana facilities, including Cameron LNG, Cheniere Energy's Sabine Pass, and Venture Global's Calcasieu Pass. Year-to-date, gas production has fallen by about 7% due to delayed well completions and reduced drilling by companies like EQT and Chesapeake following a drop in prices to 3.5-year lows earlier in the year.