Your Daily Energy Report for July 18, 2024
Posted on 2024-07-18
Crude Oil
Crude Oil futures for August settled down -$.03 or -.036% at $82.82. Oil prices stabilized on Thursday as investors navigated conflicting signals regarding crude demand. Concerns about a potential economic slowdown in the U.S. were balanced against growing expectations that the Federal Reserve might soon lower interest rates. According to a Fed report released on Wednesday, U.S. economic activity grew at a slight to modest pace from late May through early July, with businesses anticipating slower growth ahead. Additionally, a rise in jobless claims indicated a softening economy, which could reduce crude demand and keep oil prices in check. This labor market slowdown, combined with recent signs of easing inflation, strengthens the case for the Federal Reserve to cut rates as early as September. Meanwhile, in Canada, wildfires threatened 400,000 barrels per day of oil production, potentially impacting shipments to the U.S. and driving up prices for Canadian heavy crude.
Natural Gas
Natural Gas futures for August settled up $.09 or 4.423% at $2.125. US natural gas futures jumped on Thursday​, bouncing back from a 10-week low after the EIA reported a smaller-than-anticipated storage injection. Last week, US utilities added 10 Bcf of gas into storage, falling short of the expected 28 Bcf increase, bringing total stockpiles to 3,209 Bcf, which is 16.9% above the five-year average. Despite this rise, natural gas prices are on track for a 9% decline this week due to forecasts of milder weather and a decrease in feedgas to LNG export plants. Gas flows to US LNG export facilities have dropped to 11.6 bcfd so far in July from 12.8 bcfd in June, primarily due to the shut down of Freeport LNG and recent cutbacks at Cheniere Energy's Corpus Christi plant.