Your Daily Energy Report for May 31, 2024

Posted on 2024-05-31

Crude Oil

Crude Oil futures for July settled down -$.92 or -1.181% at $76.99. Oil prices declined on Friday and were headed for a weekly decline as investors anticipated an OPEC+ meeting on Sunday, which will determine the future of the group's output cuts. Markets are focused on the upcoming OPEC+ meeting, where the group is negotiating a complex agreement to potentially extend some of its significant oil production cuts into 2025. Data from the EIA on Friday revealed that U.S. crude production increased in March to its highest level this year. Although oil prices briefly increased after U.S. government data indicated stable inflation in April, bolstering expectations that the Federal Reserve might implement a rate cut in September. Meanwhile, U.S. energy firms maintained their oil and gas rig count at 600 for the week ending May 31, with oil rigs decreasing by one to 496 and gas rigs increasing by one to 100.

Natural Gas

Natural Gas futures for July settled up $.015 or .583% at $2.587. U.S. natural gas futures edged up on Friday as short-sellers moved to cover their positions before the weekend. This rise follows a week marked by heavy selling due to concerns over higher production, favorable weather conditions, and a larger-than-anticipated storage report. Weather predictions indicate low demand over the weekend, with a potential uptick next week as temperatures are expected to climb. According to Algerian Energy Minister Mohamed Arkab, Algeria's state-owned energy company Sonatrach is poised to finalize an agreement with Chevron in the coming days, which will enhance the nation's natural gas output. Additionally, extreme temperatures in Asia are boosting demand for LNG as importers in the region, particularly in South Asia, seek to secure supplies ahead of the summer.

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