Your Daily Energy Report for May 07, 2024

Posted on 2024-05-07

Crude Oil

Crude Oil futures for June settled down -$.10 or -.127% at $78.38. On Tuesday, oil prices saw a marginal decline amidst indications of reduced supply worries. Market watchers turned their attention to forthcoming U.S. stockpile data, expected later today and on Wednesday. The U.S. Energy Information Administration adjusted its forecasts, predicting increased global oil and liquid fuels production for the year, while revising down demand estimates. Although a U.S. government request to purchase over 3 million barrels for the Strategic Petroleum Reserve lent some support, focus remained on the imminent U.S. oil storage reports. Oil traders largely looked past escalating tensions in the Middle East, where the Israeli military seized control of the Rafah border crossing between the Gaza Strip and Egypt and its tanks pushed into the southern Gazan town of Rafah, as mediators struggled to secure a ceasefire agreement

Natural Gas

Natural Gas futures for June settled up $.012 or .547% at $2.207. U.S. natural gas futures have managed to notch up their fourth consecutive daily gain, supported by a decrease in production and heightened LNG demand. However, this upward momentum is tempered by the persisting surplus in storage levels. The recent spike in U.S. natural gas prices, including a 3% rise to a four-week peak on Monday, is primarily attributed to the expected surge in demand over the next fortnight. This surge is fueled by the increased supply of feedgas to LNG export facilities, notably with the resumption of operations at Freeport LNG in Texas. With U.S. gas production witnessing a notable decline of around 9% in 2024 so far, the domestic market is under tightening pressure.


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