Your Daily Energy Report for August 14, 2024
Posted on 2024-08-14
Crude Oil
Crude Oil futures for September settled down -$1.37 or -1.749% at $76.98. Oil prices dipped on Wednesday following an unexpected increase in U.S. crude inventories and a slight easing of concerns about a potential broader Middle East conflict impacting oil production. U.S. crude stockpiles rose by 1.4 million barrels, contrary to forecasts of a 2.2 million barrel decline, as reported by the U.S. Energy Information Administration. This marked the first increase after six consecutive weeks of inventory reductions. Meanwhile, gasoline and distillate stocks fell more than anticipated. Iran threatened a harsh response to the assassination of a Hamas leader last month, but Iranian officials suggested that only a ceasefire in Gaza would prevent Iran from retaliating against Israel. Additionally, the International Energy Agency reduced its 2025 oil demand growth forecast on Tuesday, citing the impact of China’s economic slowdown on consumption. This followed OPEC’s revision of its 2024 demand expectations for similar reasons.
Natural Gas
Natural Gas futures for September settled up $.071 or 3.305% at $2.219. Natural gas prices climbed on Wednesday, marking their highest point in roughly a month. This increase was driven by a reduction in production and predictions of hotter weather later in August, which are likely to lead to more air conditioning use and, consequently, higher gas demand. Forecasts now indicate a rise in "cooling degree days," a metric for energy requirements for cooling. Furthermore, U.S. gas production has fallen to 102.6 billion cubic feet per day this month, a decrease from July’s 103.4 bcfd and December’s record of 105.5 bcfd. This reduced supply is anticipated to keep prices sensitive to any disruptions or further heatwaves.