Your Daily Energy Report for July 9, 2024
Posted on 2024-07-09
Crude Oil
Crude Oil futures for August settled down -$.92 or -1.117% at $81.41. Oil prices dipped on Tuesday following reports that supply disruptions from Hurricane Beryl would be minimal after a key Texas oil hub sustained less damage than expected. Despite some evacuations of offshore production sites, port closures, and slowed refining, major Gulf Coast refineries experienced little impact as Beryl downgraded to a tropical storm. Major Texas oil ports were expected to reopen on Tuesday, with some facilities beginning to ramp up output. Refiners like Marathon Petroleum were also preparing to restart their units. Markets awaited crucial U.S. inflation data, with Federal Reserve Chair Powell scheduled to testify before Congress on Tuesday and Wednesday. Investors anticipated a higher likelihood of a September interest rate cut, estimated at around 70%, due to recent weak labor market data.
Natural Gas
Natural Gas futures for August settled down-$.022 or -.93% at $2.344. US natural gas futures are slightly down today, near their lowest point in seven weeks, amid reduced concerns about Hurricane Beryl's impact on US LNG facilities. Freeport LNG plans to resume operations post-storm. Corpus Christi and Sabine Pass LNG projects show no production declines, indicating minimal overall impact. Meanwhile, a persistent US heatwave is boosting natural gas consumption for electricity due to high air conditioning demand. Eni, Italy’s supermajor, announced a significant natural gas find in the Gulf of Mexico's mid-deep waters near Mexico, with potential reserves estimated at 300 to 400 million barrels of oil equivalent. Meteorologists forecast above-average temperatures across the contiguous US through at least July 23.