Your Daily Energy Report for June 10, 2024
Posted on 2024-06-10
Crude Oil
Crude Oil futures for July settled up $2.21 or 2.926% at $77.74. On Monday, oil prices increased to start the week, reaching a one-week peak due to optimism about increased fuel demand this summer. This rise occurred despite the strengthening of the U.S. dollar and the anticipation that the U.S. Federal Reserve will maintain higher interest rates for an extended period. The previous week saw oil experiencing its third consecutive weekly decline amid worries that OPEC+'s plan to partially reverse production cuts starting in October would contribute to an oversupply. Looking ahead, investors are now focused on the upcoming U.S. consumer price index data for May, to be released on Wednesday, for indications of when the Fed might begin lowering interest rates. Additionally, the market is anticipating monthly oil supply and demand reports from the EIA and OPEC on Tuesday, as well as the International Energy Agency (IEA) report on Wednesday.
Natural Gas
Natural Gas futures for July settled down -$.012 or -.411% at $2.906. On Monday, natural gas prices finished slightly down, despite an initial sharp rise after the market opened. At the end of last week, natural gas futures nearly reached $3, driven by predictions of an unusually hot end to June. Despite a pessimistic government inventory report, the overall market sentiment remained positive, breaking a two-week losing streak. Concurrently, the North American Electric Reliability Council's annual report warned of increased risks of energy shortages in Texas, New England, the Southwest, and other regions if temperatures surpass expectations. Additionally, the Mountain Valley natural gas pipeline project requested federal approval on Monday to begin service in Virginia by June 11.