Your Daily Energy Report for July 25, 2024
Posted on 2024-07-24
Crude Oil
Crude Oil futures for September settled up $.69 or .889% at $78.28. On Thursday, oil prices increased following robust US economic data that fueled expectations for higher demand for crude oil. However, the rise was tempered by concerns about reduced oil imports from China. Data released by the US Commerce Department indicated that the US economy grew more rapidly than anticipated in the second quarter, with inflation easing, leading to speculation that the Federal Reserve might reduce interest rates in September. Lower interest rates are expected to stimulate economic activity, potentially boosting oil consumption. Conversely, in China, oil imports and refinery operations have been lower this year compared to 2023, due to weaker fuel demand amid slow economic growth. In Canada, numerous wildfires are burning across the western provinces of British Columbia and Alberta, including near the oil sands hub of Fort McMurray, which produces 3.3 million bpd.
Natural Gas
Natural Gas futures for August settled down -$.076 or -3.59% at $2.041. US natural gas prices continued their fall on Thursday, following the latest EIA storage report, which showed a larger-than-anticipated increase. Utilities in the US injected 22 Bcf of natural gas into storage last week, exceeding market forecasts of a 15 Bcf rise. Current gas storage levels now stand 16.4% above the five-year average. This week marks the second consecutive period of price decreases, driven by heightened production levels. EQT and Chesapeake Energy, responding to higher prices earlier in the year, ramped up drilling efforts, boosting output. July saw gas production in the Lower 48 states averaging 102.4 Bcf per day, up from June's 100.2 Bcf and rebounding from May's 17-month low of 99.4 Bcf.