Your Daily Energy Report for July 2, 2024
Posted on 2024-07-02
Crude Oil
Crude Oil futures for August settled down -$.20 or -.245% at $82.81. Crude prices declined on Tuesday as concerns over potential disruptions from Hurricane Beryl eased throughout the day. Beryl, originally a Category 5 hurricane moving through the Caribbean Sea, is forecasted to weaken to a tropical storm upon entering the Gulf of Mexico later this week. Earlier, on Monday, WTI increased by $1 to $84.38 per barrel amid worries that Beryl could impact offshore oil production in the U.S.-regulated northern Gulf of Mexico, coinciding with rising U.S. demand for motor fuels. However, updated forecasts tempered these concerns among traders. U.S. gasoline demand is anticipated to reach its peak this week, driven by travel for the upcoming Independence Day holiday on Thursday. The American Automobile Association projects a 5.2% increase in holiday travel compared to 2023, with car travel expected to rise by 4.8%.
Natural Gas
Natural Gas futures for August settled down -$.084 or -3.128% at $2.435. Natural gas prices fell again on Tuesday, marking the sixth consecutive day of declines. Despite recent heatwaves boosting electricity demand, U.S. natural gas inventories remain well above normal levels. As of June 21, storage stood at 568 billion cubic feet, 22% above the average for the past decade. Consequently, hedge funds and money manager shave slightly decreased their bullish positions, selling the equivalent of 79 billion cubic feet in major futures and options contracts. Additionally, a Louisiana judge ruled on Monday to lift the current ban on new Liquified Natural Gas export licenses. The Biden administration had imposed this ban a few months ago to address climate change concerns and implement reforms.