Your Daily Energy Report for August 8, 2024
Posted on 2024-08-08
Crude Oil
Crude Oil futures for September settled up $.96 or 1.276% at $76.19. On Thursday, oil prices climbed for the third straight session, supported by U.S. jobs data that eased demand worries and ongoing conflict in the Middle East, which helped prices rebound from an eight-month low earlier in the week. The market was encouraged by a report showing a sharper-than-expected drop in new unemployment claims in the U.S., alleviating concerns about a weakening labor market. Additionally, investors reacted to the news that U.S. crude inventories fell by 3.7 million barrels last week, a much larger decline than anticipated, marking the sixth consecutive weekly decrease and hitting a six-month low, according to the EIA's Wednesday report. In the Middle East, the recent killing of senior figures from militant groups Hamas and Hezbollah raised fears of potential Iranian retaliation against Israel, heightening concerns over oil supply from this critical region.
Natural Gas
Natural Gas futures for September settled up $.015 or .71% at $2.127. Natural gas gained on Thursday, following the EIA's report of a smaller-than-anticipated rise in storage levels. U.S. utilities added 21 billion cubic feet of gas to storage last week, just under the predicted 22 billion cubic feet. The report indicated that gas storage levels are now 14.9% above the five-year average, a notable decrease from the 39% surplus seen in March and 19% in June. At the same time, leading U.S. natural gas producers are planning additional production cuts in the latter half of 2024, in response to a nearly 40% price drop over the last two months. Weather remains a key influence in the natural gas market, with northern regions currently experiencing mild seasonal temperatures expected to last through mid-August.