Your Daily Energy Report for June 27, 2024
Posted on 2024-06-27
Crude Oil
Crude Oil futures for August settled up $.84 or 1.038% at $81.74. Oil futures closed higher on Thursday amid concerns over potential disruptions in global crude supplies due to increasing geopolitical tensions in the Middle East and Europe. A surprising rise in U.S. crude and gasoline inventories, however, capped the price gains. Escalating tensions between Israel and Lebanon's Hezbollah have raised fears that the conflict could expand to involve other nations, including major oil producer Iran. In Europe, Russia is contemplating a possible downgrade in relations with Western countries due to the increased involvement of the U.S. and its allies in the Ukraine conflict, though no final decision has been made. The EIA reported a weekly increase of 3.6 million barrels in crude oil stocks, with gasoline inventories rising by 2.7 million barrels. Additionally, gasoline storage at the Amsterdam-Rotterdam-Antwerp hub in Europe saw an over 9% increase in the week, showing limited potential for transatlantic U.S. gasoline demand.
Natural Gas
Gas futures for August settled down -$.06 or -2.186% at $2.685. Natural gas futures experienced a decline on Thursday following the release of the EIA's storage report, which indicated that US utilities added 52 billion cubic feet of natural gas to storage last week, slightly below the anticipated 53 bcf. Current gas reserves stand 20.6% above the seasonal average. Despite this surplus, natural gas prices are poised for a third consecutive week of decreases, driven by heightened production levels. Producers such as EQT and Chesapeake Energy have resumed drilling due to previous weeks' higher prices. Despite forecasts of high temperatures across much of the southern US, increased wind energy production, particularly in Texas, is expected to partially offset demand.