Your Daily Energy Report for June 28, 2024
Posted on 2024-06-28
Crude Oil
Crude Oil futures for August settled down -$.20 or -.245% at $81.54. Oil prices declined marginally on Friday due to concerns over soft U.S. fuel demand, while recent inflation data for May increased speculation about potential interest rate cuts by the U.S. Federal Reserve later this year. U.S. oil production and overall demand reached their highest levels in four months in April, yet gasoline demand dropped to 8.83 million barrels per day, the lowest since February, according to the latest EIA Petroleum Supply Monthly report. Despite this, the U.S. personal consumption expenditures (PCE) price index, which is closely monitored by the Fed, showed no change in May, bolstering expectations of rate cuts by September. On the supply front, analysts have observed increased crude production from non-OPEC countries.
Natural Gas
Natural Gas futures for August settled down -$.084 or -3.128% at $2.601. Natural gas futures declined on Friday as traders assessed the influences of weather conditions, storage metrics, and production levels on the short-term market forecast. NatGas Weather reported that from June 26 to July 3, strong high pressure would dominate the southern two-thirds of the U.S., resulting in hot temperatures mainly in the 90s and 100s, with overall demand anticipated to be high to very high during this period. Storage levels are currently 314 Bcf higher than the same time last year and 528 Bcf above the five-year average of 2,569 Bcf, with total working gas now exceeding the historical five-year range. Additionally, the Federal Energy Regulatory Commission has authorized Venture Global to build and operate the CP2 terminal in Cameron Parish on the Gulf Coast and to construct and operate the CP Express Pipeline, linking the terminal to the gas pipeline network in east Texas and southwest Louisiana.