Your Daily Energy Report for September 6, 2024
Posted on 2024-09-06
Crude Oil
Crude Oil futures for October settled down -$1.48 or -.2.14% at $67.67. Oil prices declined on Friday following news that U.S. job growth in August was lower than expected, contributing to a substantial weekly decline. Concerns about demand outweighed the decision by OPEC+ to postpone increases in oil production. Meanwhile, U.S. government data indicated a modest increase in employment for August, with the unemployment rate dropping to 4.2%, suggesting a steady labor market slowdown that may not necessitate a significant interest rate cut from the Federal Reserve. Earlier in the week, despite reductions in U.S. oil inventories and OPEC+'s postponement of planned output hikes, Brent settled at its lowest level since June 2023. Additionally, indications of potential progress in resolving Libya's oil export dispute between rival factions exerted further downward pressure on oil prices, with exports remaining largely suspended but some loading activities permitted from storage facilities.
Natural Gas
Natural Gas futures for October settled up $.021 or .932% at $2.275. Natural gas prices rose on Friday due to new government inventory data and reduced production levels. The Energy Information Administration (EIA) reported a 13 Bcf increase in storage for the week ending August 30, 2024, totaling 3,347 Bcf. Despite a modest weekly injection, an 11% surplus continues to impact prices. U.S. natural gas production remains stable at about 101 Bcf per day, with recent reductions stabilizing the market. LNG exports provide crucial support, despite concerns about potential hurricane disruptions. While temperatures are higher in parts of the southern U.S. and West, overall cooling demand is expected to remain moderate next week, shaping market conditions.