Coquest

Your Daily Energy Report for August 15, 2024

Posted on 2024-08-15

Crude Oil

Crude Oil futures for September settled up $1.18 or 1.533% at $78.16. On Thursday, oil prices increased by over $1 per barrel following U.S. economic data that eased recession worries for the largest economy in the world. Despite this boost, concerns about slower global demand capped the gains. Data released by the Labor Department on Wednesday indicated a modest rise in U.S. consumer prices for July. Additionally, U.S. retail sales surpassed expectations for the month, and there was a smaller-than-anticipated rise in unemployment benefit claims. These indicators
strengthened the belief that the Federal Reserve might lower interest rates next month, potentially stimulating economic activity and oil demand. Meanwhile, the ongoing Russia-Ukraine conflict also contributed to higher oil prices. Russia announced plans to enhance its border defenses and send additional forces after Ukraine launched its largest attack on Russian territory since World War II. 
 

Natural Gas

Natural Gas futures for September settled down -$.022 or -.991% at $2.197. On Thursday, natural gas prices experienced a slight decrease following an unexpected drop in the latest EIA report. The data indicated that U.S. utilities withdrew 6 billion cubic feet of natural gas for the week ending August 9th, marking the first August decline since 2006, contrary to the anticipated 43 billion cubic feet increase typically seen due to seasonal trends. Additionally, U.S. gas production fell to 102.6 billion cubic feet per day this month, down from 103.4 bcfd in July and a peak of peak of 105.5 bcfd last December. This reduction in output is expected to bolster prices, making them more sensitive to supply interruptions or additional heat.

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