Your Daily Energy Report for August 26, 2024
Posted on 2024-08-26
Crude Oil
Crude Oil futures for October settled up $2.59 or 3.461% at $77.42. Oil prices closed 3% higher on Monday due to reduced production in Libya and escalating tensions in the Middle East. The eastern-based government of Libya announced the shutdown of all oil fields, stopping production and exports. Waha Oil Company, a subsidiary of NOC, stated it would gradually decrease output and warned of a potential complete halt due to unspecified "protests and pressures". In July, Libya produced approximately 1.18 million barrels per day, according to OPEC. Additionally, an oil tanker in the Red Sea has been ablaze since August 23 following an attack by Yemen's Houthis, as reported by EU naval mission Aspides. San Francisco Fed President Mary Daly remarked on Monday that it seemed unlikely anything could prevent a September interest rate cut from the current range of 5.25%-5.50%.
Natural Gas
Natural Gas futures for September settled down -$.066 or -3.264% at $1.956. Natural gas prices on Monday, marking their lowest point in three weeks, driven by concerns of oversupply. Storage levels remain 12.6% above the five-year average despite smaller-than-usual weekly increases, according to the most recent EIA report. US utilities injected 35 billion cubic feet of gas into storage for the week ending August 16, surpassing market forecasts. In response, major producers such as EQT and Chesapeake Energy are scaling back production and postponing projects to address the oversupply, although these adjustments typically take several months to impact output. This decline in prices occurs despite predictions of hotter-than-normal weather persisting through September 7, typically boosting gas demand for cooling purposes.