Oil & Gas Prices - May 14
Posted: Tue May 14, 2024 2:12 pm
Trading Economics:
> WTI crude futures dropped below $78 per barrel on Tuesday, closing in on their lowest level in one month, as higher-than-expected US producer prices in April, led to concerns about prolonged higher interest rates by the Fed and potential impacts on oil demand.
> Adding to woes, the latest OPEC report showed that OPEC+ members exceeded their agreed limit by pumping an additional 568,000 barrels per day last month. Despite this, OPEC remains optimistic about global oil demand, projecting a rise of 2.25 million barrels per day in 2024 and 1.85 million barrels per day in 2025.
> Meanwhile, the market is closely monitoring wildfires in western Canada, which could disrupt the country's oil supply of 3.3 million barrels per day.
> In the Middle East, Iraq's oil minister has reassured compliance with OPEC+ production cuts, reversing an earlier statement.
> Natural gas futures in the US fell to $2.33/MMBtu on Tuesday, from a 4-month high of $2.381 in the previous session, driven by expectations of decreased demand over the next two weeks and concerns about an oversupply of gas in storage, with levels currently estimated to be 31% higher than normal for this time of year.
> Despite this, there has been an increase in gas flows to LNG export facilities as Freeport LNG's plant in Texas resumed operations after maintenance. > US gas production has fallen by 9% in 2024 as companies like EQT and Chesapeake Energy delayed well completions and reduced drilling activities in response to lower prices earlier in the year.
> Daily production also decreased by 1.5 bcfd over the past two days, reaching a preliminary 96.5 bcfd on Tuesday.
> WTI crude futures dropped below $78 per barrel on Tuesday, closing in on their lowest level in one month, as higher-than-expected US producer prices in April, led to concerns about prolonged higher interest rates by the Fed and potential impacts on oil demand.
> Adding to woes, the latest OPEC report showed that OPEC+ members exceeded their agreed limit by pumping an additional 568,000 barrels per day last month. Despite this, OPEC remains optimistic about global oil demand, projecting a rise of 2.25 million barrels per day in 2024 and 1.85 million barrels per day in 2025.
> Meanwhile, the market is closely monitoring wildfires in western Canada, which could disrupt the country's oil supply of 3.3 million barrels per day.
> In the Middle East, Iraq's oil minister has reassured compliance with OPEC+ production cuts, reversing an earlier statement.
> Natural gas futures in the US fell to $2.33/MMBtu on Tuesday, from a 4-month high of $2.381 in the previous session, driven by expectations of decreased demand over the next two weeks and concerns about an oversupply of gas in storage, with levels currently estimated to be 31% higher than normal for this time of year.
> Despite this, there has been an increase in gas flows to LNG export facilities as Freeport LNG's plant in Texas resumed operations after maintenance. > US gas production has fallen by 9% in 2024 as companies like EQT and Chesapeake Energy delayed well completions and reduced drilling activities in response to lower prices earlier in the year.
> Daily production also decreased by 1.5 bcfd over the past two days, reaching a preliminary 96.5 bcfd on Tuesday.