Your Daily Energy Report for September 4, 2024
Posted on 2024-09-04
Crude Oil
Crude Oil futures for October settled down -$1.14 or -1.621% at $69.20. Crude oil prices dropped on Wednesday amidst volatile trading, as traders expressed concerns over future demand due to mixed signals from crude producers regarding supply increases. Economic data from the U.S. and China, which indicated a sluggish global economy and weaker oil demand, contributed to a broader decline in global markets. Additionally, recent Chinese data revealed a decline in manufacturing activity to a six-month low in August, coinciding with slower growth in new home prices. In the U.S., manufacturing activity remained subdued according to the latest Institute for Supply Management report released on Tuesday. Meanwhile, there was optimism among traders that the dispute affecting Libyan oil exports might soon be resolved, potentially increasing global crude supply. Due to the Labor Day holiday on Monday, the weekly U.S. oil inventory data was delayed.
Natural Gas
Natural Gas futures for October settled down -$.058 or -2.633% at $2.145. Natural gas prices initially rose but later closed lower as cooler weather is anticipated to suppress demand. The upcoming weekly inventory report is projected to reveal a 29 Bcf increase in storage, smaller than the five-year average of 51 Bcf for this week, narrowing the surplus from 361 Bcf to 339 Bcf compared to the previous week. With September's arrival, attention has shifted from summer storage to winter withdrawals, making storage levels and heating demand critical factors influencing price trends. NatGasWeather forecasts cooler temperatures across the U.S. from September 3-9, with highs ranging from the 60s to 80s, which is expected to decrease national natural gas demand as the need for air conditioning diminishes.