Your Daily Energy Report for July 5, 2024
Posted on 2024-07-05
Crude Oil
Crude Oil futures for August settled down -$.72 or -.72% at $83.16. Oil prices dipped on Friday as the growing likelihood of a ceasefire in Gaza offset strong summer fuel demand and potential supply disruptions from a Gulf of Mexico hurricane. Efforts to achieve a ceasefire and secure hostage releases in Gaza gained traction after Hamas presented a new proposal, prompting Israel to resume stalled negotiations. WTI did not settle on Thursday due to the Independence Day holiday, resulting in light trading, though prices have climbed this week due to strong summer oil demand expectations in the U.S. The U.S. Energy Information Administration (EIA) reported a significantly larger-than-expected draw of 12.2 million barrels in inventories last week, compared to the forecasted 700,000 barrels. On the supply side, Hurricane Beryl, a Category 2 storm, made landfall in Mexico after causing significant damage and at least 11 fatalities in the Caribbean.
Natural Gas
Natural Gas futures for August settled down -$.099 or -4.094% at $2.319. U.S. natural gas futures have declined for eight consecutive sessions due to increased domestic production and reduced spot prices, combined with near-term weather forecasts indicating lower cooling demand. However, temperatures are anticipated to rise next week. Hurricane Beryl, currently a tropical storm, is expected to regain hurricane strength before making a second landfall between Mexico and southern Texas. The storm could affect production and LNG exports but may also lead to decreased demand due to cooler temperatures and power outages. The latest EIA Weekly Natural Gas Storage report showed a 32 Bcf increase in storage from the previous week, surpassing the analyst consensus of a 29 Bcf rise.