Your Daily Energy Report for July 26, 2024
Posted on 2024-07-26
Crude Oil
Crude Oil futures for September settled down -$1.12 or -1.431% at $77.16. Oil futures dropped over 1% on Friday and appeared set to end the week lower, driven by decreasing Chinese demand and the possibility of a Gaza ceasefire that could reduce Middle East tensions and supply concerns. Data from last week indicated an 11% decline in China's total fuel oil imports during the first half of 2024, sparking worries about overall demand in China. Additionally, demand from the world's largest oil consumer is expected to decline as U.S. refiners plan to reduce production with the summer driving season ending in early September. In the Middle East, there is growing optimism for a ceasefire in Gaza. Negotiations have been ongoing for months, but U.S. officials believe the parties are closer than ever to agreeing on a six-week ceasefire in exchange for the release of female, sick, elderly, and wounded hostages by Hamas.
Natural Gas
Natural Gas futures for August settled down -$.035 or -1.715% at $2.006. U.S. natural gas futures fell for the fourth straight session on Friday due to lackluster storage data and abundant supply. The EIA reported a 22 Bcf increase in working gas storage for the week ending July 19, pushing total storage above both last year's levels and the five-year average. NatGasWeather forecasts that high-pressure systems will bring temperatures in the 90s-100s to the southwestern, central, and southeastern U.S. through the weekend, potentially increasing demand. The hot summer and low wind speeds have resulted in the lowest wind power output in 33 months, causing power producers to rely more on natural gas to meet the summer electricity demand.