Your Daily Energy Report for July 19, 2024
Posted on 2024-07-19
Crude Oil
Crude Oil futures for August settled down -$2.69 or -3.248% at $80.13. Oil prices declined on Friday as investors responded to renewed hopes for a ceasefire in Gaza and the impact of a stronger dollar. U.S. Secretary of State Antony Blinken indicated that a long-anticipated ceasefire between Israel and Hamas was within reach. The conflict in Gaza had caused investors to include a risk premium in oil trading due to concerns about global supply disruptions. Additionally, the U.S. dollar index rose following stronger-than-expected U.S. labor market and manufacturing data earlier in the week, which put further pressure on oil prices. A stronger dollar typically reduces demand for dollar-denominated oil from buyers using other currencies. Meanwhile, two large oil tankers caught fire after a collision in waters near Singapore.
Natural Gas
Natural Gas futures for August settled up $.003 or .141% at $2.128. U.S. natural gas futures retained gains from the previous day but concluded a turbulent week with an 8.6% decline, attributed to reduced LNG feedgas deliveries and forecasts of cooler weather in the near term. On Wednesday, natural gas production briefly dipped below the critical 100 Bcf/d threshold before recovering to 101 Bcf/d on Thursday. This temporary drop, along with Freeport LNG's plans to boost production, might lend some support to prices. The weather forecast indicates a mixed pattern, suggesting moderate national demand over the next five days. The EIA's weekly storage report on Thursday revealed a net increase of 10 Bcf, significantly below the anticipated 23-29 Bcf and the five-year average of 49 Bcf. In other news, Bolivia's state-owned oil and gas company YPFB announced the discovery of a substantial natural gas field, the largest find in nearly two decades, which could potentially become the country's third-largest producing field.