Your Daily Energy Report for August 13, 2024
Posted on 2024-08-13
Crude Oil
Crude Oil futures for September settled down -$1.71 or -2.136% at $78.35. Crude oil prices decreased on Tuesday, as traders' concerns about a broader conflict in the Middle East diminished, with Iran having not yet followed through on threats to retaliate against Israel for the assassination of a Hamas official in Tehran. The International Energy Agency maintained its forecast for global oil demand growth in 2024 but lowered its estimate for 2025, attributing it to sluggish economic growth driven by weak Chinese consumption. Additionally, on Monday, the Organization of the Petroleum Exporting Countries revised its demand expectations for 2024 downward despite plans by OPEC+ to increase production starting in October. Although trader's worries have diminished around Iran's retaliation against Israel, the U.S. is bracing for potentially significant attacks in the region as early as this week, as stated by White House national security spokesperson John Kirby on Monday. Markets are also anticipating the U.S. consumer price index report on Wednesday.
Natural Gas
Natural Gas futures for September settled down -$.041 or -1.873% at $2.148. Natural gas prices declined after increasing over the last five sessions. Despite the market's ample supply, shifts in fundamentals, such as reduced output and higher spot prices, have caught the attention of investors, boosting natural gas futures. Demand is expected to increase over the next few weeks as temperatures soar into the 80s to 100s across much of the interior U.S., particularly in the Southwest deserts and Texas. While Russia continues to supply gas through the UPU pipeline, the future of this route is uncertain, with the current contract set to end in 2024. Europe is increasingly relying on LNG imports from the U.S. and other nations to lessen its dependence on Russian gas, a trend likely to persist amid ongoing geopolitical tensions.