Your Daily Energy Report for August 29, 2024
Posted on 2024-08-29
Crude Oil
Crude Oil futures for October settled up $1.39 or 1.865% at $75.91. Oil prices increased by over one dollar per barrel on Thursday due to disruptions in supply from Libya and plans to reduce output in Iraq, which raised concerns about a tighter market. More than half of Libya's oil production was offline, and exports were stopped at several ports amid a standoff between competing political factions. Approximately 700,000 barrels per day of oil output in Libya were affected. Even once the current blockades are lifted, Libya is expected to remain unpredictable for the markets next year. Additionally, expectations that the U.S. central bank would begin lowering interest rates next month provided further support to oil prices. Atlanta Federal Reserve President Raphael Bostic suggested it might be time for rate cuts, citing decreased inflation and higher-than-expected unemployment. Meanwhile, U.S. crude inventories last week showed a decrease of 846,000 barrels to 425.2 million barrels.
Natural Gas
Natural Gas futures for October settled up $.04 or 1.907% at $2.137. Natural gas prices traded up on Thursday, following the Energy Information Administration announcement of an increase in storage. US utilities injected 35 billion cubic feet of natural gas into storage for the week ending August 23, matching the previous week's volume and falling short of expectations. This addition pushed storage levels to 12.1% above the five-year average, highlighting an ongoing surplus in supply. Looking ahead, meteorologists forecast above-normal temperatures across the nation until September 13. In other news, Freeport LNG's export facility in Texas is scheduled to resume operations on Thursday after a brief shutdown the previous day.