Your Daily Energy Report for August 30, 2024
Posted on 2024-08-30
Crude Oil
Crude Oil futures for October settled down -$2.36 or -3.109% at $73.55. Crude prices fell on Friday after investors adjusted their expectations due to anticipated increases in OPEC+ oil supply starting in October and reduced prospects for a significant US interest rate cut following strong consumer spending data. Despite disruptions in Libya and production cuts by some OPEC+ members to counter overproduction, sources within the group indicate OPEC+ intends to proceed with its planned output hike. Recently, all oil fields in Libya were shut down by its eastern government, halting production and exports, which briefly pushed oil prices to a near two-week high on August 26. In the US, crude inventories are currently at their lowest since January, with stockpiles in Cushing, Oklahoma at their lowest since November. This marks oil's second monthly decline this year, prompting Goldman Sachs and Morgan Stanley to revise down price forecasts citing weak demand from China, the world's largest importer.
Natural Gas
Natural Gas futures for October settled down -$.01 or -.468% at $2.127. Natural gas prices declined in a volatile trading session amid a broad retreat in energy prices, primarily influenced by the drop in crude oil prices. The latest EIA report, which indicated a 35 Bcf increase in storage, was perceived as neutral as it aligned closely with market expectations and continued the gradual reduction of surplus inventories. NatGasWeather forecasts sustained high temperatures across most of the U.S. throughout the weekend, bolstering gas demand. However, a shift towards milder weather next week, especially in the southern U.S., is anticipated to reduce demand. This potential cooling trend might dampen the bullish sentiment observed in recent trading sessions, introducing additional complexity to market dynamics.