Your Daily Energy Report for September 5, 2024
Posted on 2024-09-05
Crude Oil
Crude Oil futures for October settled down -$.05 or -.072% at $69.15. Oil prices remained stagnant at their lowest point in over a year on Thursday due to concerns about demand from major economies such as the United States and China, alongside expectations of increased oil production from Libya. These factors countered the impact of a significant reduction in U.S. crude oil inventories, which saw energy companies withdrawing 6.9 million barrels during the week ending August 30. This withdrawal exceeded analysts' expectations of 1 million barrels but aligned closely with the 7.4 million barrels draw reported by the American Petroleum Institute earlier in the week. Additionally, support for prices stemmed from ongoing discussions among OPEC and its allies regarding postponing planned output increases set to begin in October. Meanwhile, in Libya, certain tankers were allowed to load crude oil from the country's storage facilities despite ongoing limitations on production due to political tensions.
Natural Gas
Natural Gas futures for October settled up $.109 or 5.082% at $2.254. Natural gas prices climbed on Thursday to their highest levels in nearly two months, driven by a combination of supply constraints and steady demand. New EIA data revealed that U.S. natural gas inventories increased by 13 billion cubic feet in the final week of August, below seasonal averages and well under the market's expected build of 28 bcf. This contradicted earlier forecasts of ample domestic supply, particularly amid reduced LNG shipments. Additionally, concerns overpotential cyclone development in the Gulf region threatening LNG shipments, coupled with record-high temperatures in the Midwest increasing air conditioning demand, further supported the price rally.