Your Daily Energy Report for July 8, 2024
Posted on 2024-07-08
Crude Oil
Crude Oil futures for August settled down -$.83 or -.998% at $82.33. Oil prices dropped about 1% to a one-week low on Monday due to Hurricane Beryl impacting U.S. refineries and ports along the Gulf of Mexico, and optimism about a potential ceasefire in Gaza, which could ease concerns about global crude supply disruptions. In the Middle East, Qatar and Egypt are mediating talks for a U.S. ceasefire plan to end the nine-month conflict in Gaza. Investors are also closely monitoring the effects of recent elections in the UK, France, and Iran on geopolitics and energy policies. In France, the left expressed a desire to govern despite challenging negotiations following an election that resulted in a hung parliament and thwarted the right. Meanwhile, crude oil imports in Asia declined in the first half of 2024 compared to the same period last year, primarily due to reduced shipments to China, the world's largest oil importer.
Natural Gas
Natural Gas futures for August settled up $.047 or 2.027% at $2.366. Natural gas futures increased in early trading Monday due to forecasts of higher temperatures and expectations of a quick recovery in U.S. LNG exports after Hurricane Beryl. Weather forecasts predict that high pressure will prevail across much of the western, southern, and eastern U.S. from July 8-14. Hurricane Beryl made landfall near Matagorda, TX, early Monday morning as a Category 1 storm, bringing strong winds and heavy rainfall to the Texas coast near Houston. The storm caused LNG exports to drop significantly to around 11.4 Bcf for Monday. Despite this temporary decrease, LNG exports are anticipated to rebound swiftly. Additionally, U.S. production levels are slightly lower than the previous week, adding to the market’s expectation of a quick recovery.