Your Daily Energy Report for July 15, 2024
Posted on 2024-07-15
Crude Oil
Crude Oil futures for August settled down -$.30 or -.365% at $81.91. Oil prices dipped on Monday as concerns over demand in China, the top importer, outweighed positive U.S. economic news, OPEC+ supply limits, and ongoing tensions in the Middle East. China's economy grew slower than anticipated in the second quarter due to a prolonged property slump and job insecurity, suggesting that Beijing may need to introduce further stimulus measures. China's refinery output decreased by 3.7% in June compared to a year earlier, marking the third consecutive month of decline due to planned maintenance, lower processing margins, and weak fuel demand, leading independent plants to reduce output. In the U.S., market attention was drawn to the assassination attempt on former President Donald Trump, which some speculate could enhance his re-election prospects. In the Middle East, geopolitical tensions continued to support oil prices, although the substantial spare capacity held by Saudi Arabia and other OPEC members has limited price increases.
Natural Gas
Natural Gas futures for August settled down -$.171 or -7.342% at $2.158. Natural gas futures fell on Monday, with the August Nymex contract experiencing a significant drop. The prolonged shutdown of the Freeport LNG terminal on the Texas coast continues to exert downward pressure on prices. Hopes for a restart over the weekend were unmet, contributing to Monday's decline. Weather models have reduced the predicted heat for the Lower 48 states later this week, lowering expected demand. Additionally, production saw an increase over the weekend, adding to the downward pressure. These elements, coupled with consistently high storage levels, are keeping the market under pressure.