Your Daily Energy Report for August 2, 2024
Posted on 2024-08-02
Crude Oil
Crude Oil futures for September settled down -$2.79 or -3.656% at $73.52. WTI crude futures declined on Friday, hitting a two-month low and continuing the downward trend from the previous session. This drop was driven by concerns about global oil demand outweighing supply risks from escalating geopolitical tensions in the Middle East. Data released on Friday indicated a sharp slowdown in U.S. job growth, an increase in the unemployment rate to 4.3%, and slower wage growth, compounding weak manufacturing data. The ISM Manufacturing PMI showed a more significant contraction in U.S. factory activity than expected, while China’s factory activity unexpectedly contracted for the first time since last October. Additionally, markets are closely watching Iran's response to the assassination of Hamas leader Ismail Haniyeh.
Natural Gas
Natural Gas futures for September settled down -$.001 or -.051% at $1.967. Natural gas prices remained relatively stable on Friday after revised weather forecasts reduced the warnings of extreme heat, lowering the anticipated demand for air conditioning, which relies heavily on natural gas. Earlier predictions of record-breaking temperatures in the Lower 48 states in August had caused natural gas futures to bounce back sharply from a more than three-month low of $1.9 last week. However, the adjustment in the expected severity of the heatwave has since alleviated those concerns. Despite this, potential supply shortages continued to lend some support to the global gas markets. Additionally, ExxonMobil CEO Darren Woods announced that the Golden Pass LNG export project in Texas will be postponed until the latter half of 2025. This delay in the 18 million metric ton/year facility, a collaboration with Qatar Energy, comes after contractor Zachry Holdings exited due to cost overruns.