Lots of noise impacting oil & gas prices - August 2
Posted: Fri Aug 02, 2024 9:21 am
Trading Economics:
"WTI crude futures fell by more than 3% to below $74 per barrel on Friday, the lowest in 2 months, and extending the losses from the previous session, as global oil demand concerns outweighed supply risks from rising geopolitical tensions in the Middle East. Data released on Friday showed US jobs growth slowed sharply, the jobless rate increased to 4.3% and wage growth slowed. This comes on top of weak manufacturing data. The ISM Manufacturing PMI revealed a larger-than-expected contraction in the US factory activity, while China’s factory activity unexpectedly contracted, the first fall since last October. Meanwhile, markets are closely monitoring Iran's response to the assassination of Hamas leader Ismail Haniyeh, which follows the killing of Hezbollah's top commander in a Beirut airstrike."
"US natural gas futures were above the $2.05 per MMBtu mark, loosely holding the week’s increase amid risks to supply and expectations of higher demand. The latest data from the EIA showed that US utilities added 18 billion cubic feet of gas on the week ending July 26th, half of what was expected by financial markets. This extended worries of lower supply in the US following reports that Freeport LNG, the second-largest US export facility, is pulling more than 2 billion cubic feet of gas per day and is on track to return to full production. Added capacity for US LNG exporters increases the amount of foreign sales and raises buying competition for US consumers. In the meantime, expectations of intense heat in the Lower 48 states supported demand for gas-intensive cooling."
IN MY OPINION the "Right Prices" are $80/bbl for WTI oil and $3.00/MMBtu of HH natural gas.
"WTI crude futures fell by more than 3% to below $74 per barrel on Friday, the lowest in 2 months, and extending the losses from the previous session, as global oil demand concerns outweighed supply risks from rising geopolitical tensions in the Middle East. Data released on Friday showed US jobs growth slowed sharply, the jobless rate increased to 4.3% and wage growth slowed. This comes on top of weak manufacturing data. The ISM Manufacturing PMI revealed a larger-than-expected contraction in the US factory activity, while China’s factory activity unexpectedly contracted, the first fall since last October. Meanwhile, markets are closely monitoring Iran's response to the assassination of Hamas leader Ismail Haniyeh, which follows the killing of Hezbollah's top commander in a Beirut airstrike."
"US natural gas futures were above the $2.05 per MMBtu mark, loosely holding the week’s increase amid risks to supply and expectations of higher demand. The latest data from the EIA showed that US utilities added 18 billion cubic feet of gas on the week ending July 26th, half of what was expected by financial markets. This extended worries of lower supply in the US following reports that Freeport LNG, the second-largest US export facility, is pulling more than 2 billion cubic feet of gas per day and is on track to return to full production. Added capacity for US LNG exporters increases the amount of foreign sales and raises buying competition for US consumers. In the meantime, expectations of intense heat in the Lower 48 states supported demand for gas-intensive cooling."
IN MY OPINION the "Right Prices" are $80/bbl for WTI oil and $3.00/MMBtu of HH natural gas.