Your Daily Energy Report for June 25, 2024
Posted on 2024-06-25
Crude Oil
Crude Oil futures for August settled down -$.80 or -.98% at $80.83. On Tuesday, crude oil prices declined as weak U.S. consumer confidence data heightened economic concerns and exacerbated worries about demand following a sluggish start to the U.S. summer driving season. Consumer confidence in the U.S. dropped in June, and despite households remaining optimistic about the labor market and anticipating a moderation in inflation over the next year, fears of an economic slowdown could lead to decreased gasoline consumption. Nevertheless, a preliminary Reuters poll conducted on Monday suggested that U.S. crude oil and gasoline inventories likely decreased, while distillate stocks probably increased last week. Oil prices were still supported by supply disruptions due to Ukrainian attacks on Russian oil facilities. On June 21, Ukrainian drones targeted four refineries, including the Ilsky refinery, a significant fuel producer in southern Russia.
Natural Gas
Natural Gas futures for August settled down -$.085 or -2.883% at $2.863. U.S. natural gas futures declined on Tuesday, due to a slight uptick in production and lower-than-anticipated demand projections for the upcoming fortnight. This occurred despite widespread heatwave conditions affecting much of the nation. According to LSEG, natural gas production in the contiguous United States increased to an average of 98.5 bcfd in June, up from 98.1 bcfd in May, which marked a 25-month low. Analysts at the financial institution also predicted a drop in overall gas demand, including exports, from 103.0 bcfd for the current week to 100.3 bcfd for the following week. As parts of the southern U.S. prepare for intense heat, the northern regions are expected to experience milder weather, with temperatures ranging from the 70s to the 80s Fahrenheit.