Your Daily Energy Report for July 10, 2024
Posted on 2024-07-10
Crude Oil
Crude Oil futures for August settled up $.69 or .848% at $82.10. Oil prices closed higher on Wednesday following a surge in U.S. refining operations last week, leading to a significant decrease in gasoline and crude stocks, surpassing market expectations. WTI prices saw an increase of up to $1 during the trading session, driven by the EIA report of a 3.4 million barrel drop in crude inventories to 445.1 million barrels by July 5, well above the anticipated 1.3 million barrel decline in a Reuters poll. Gasoline stocks also fell sharply by 2 million barrels to 229.7million barrels, exceeding the expected 600,000 barrel decrease amid the 4th of July holiday week. Federal Reserve Chair Jerome Powell noted ongoing concerns about inflation, although he expressed confidence in the U.S. maintaining stable prices and low unemployment. Market sentiment leans towards potential interest rate cuts in September, seen as supportive of economic growth and oil demand.
Natural Gas
Natural Gas futures for August settled down -$.037 or -1.564% at $2.329. Natural gas futures declined again today as traders considered various market influences. Factors such as recent weather changes, LNG export levels, and production trends are currently affecting market sentiment. The anticipated recovery in LNG demand post-Hurricane Beryl, which had caused disruptions including the temporary closure of Freeport LNG Development LP’s export facility, is a key focus. Although U.S. LNG exports fell slightly in June to 7.11 million metric tons from 7.60 MT in May, there was an increase in shipments to Asia due to more favorable prices. According to the EIA, natural gas inventories at the end of June were 19% above the five-year average, potentially exerting downward pressure on prices.