Your Daily Energy Report for July 24, 2024
Posted on 2024-07-24
Crude Oil
Crude Oil futures for September settled up $.63 or .819% at $77.59. On Wednesday, oil prices rose, supported by significant drops in U.S. crude and fuel inventories, though they remained near a six-week low amid concerns about weak global demand. According to the EIA, U.S. crude stocks decreased by 3.7 million barrels last week, while gasoline inventories fell by 5.6 million barrels. Despite this, there are still apprehensions about global summer demand. U.S. oil refiners are anticipated to report significantly lower second-quarter earnings compared to last year due to a sluggish summer driving season that impacted refining margins. Additionally, crude oil deliveries to India, the world's third-largest oil importer and consumer, fell in June to their lowest level since February, according to government data. On the other hand, prices were supported by wildfires in Canada, which forced some producers to reduce production, threatening a substantial amount of supply.
Natural Gas
Natural Gas futures for August settled down -$.07 or -3.201% at $2.117. Natural gas prices fell on Wednesday, marking the second straight session of decline. Production estimates remain steady at around 101 Bcf/d, indicating a plentiful supply. European natural gas consumption has been decreasing steadily since mid-2022 due to mild winter weather and government policies aimed at cutting usage. In 2023, consumption in the EU-27 was 18% lower than the average of the previous five years. Additionally, reduced wind power output has led to greater dependence on gas-fired power plants, which generated 48% of electricity this week, up from 46% last week and 41% last year. Alaska regulators have conditionally approved a proposal by Southcentral Alaska’s natural gas utility to construct a pipeline that could potentially import natural gas into the state.