Oil & Gas Prices - August 7
Posted: Wed Aug 07, 2024 10:41 am
Primary reason for rebound in oil price: "The Sky is Not Falling".
Trading Economics
"WTI crude oil futures rose above $75 per barrel on Wednesday, continuing their upward trend after the EIA report showed a larger-than-expected drop in US crude oil inventories. Crude stocks fell for the sixth week, declining by 3.728 million barrels, much more than the anticipated 0.4 million barrel decrease. However, gasoline and distillate stockpiles increased during this period. Rising oil prices are also being driven by supply-side concerns. Tensions are escalating in the Middle East, with reports of Hamas appointing a new leader, Yahya Sinwar, potentially heightening conflict with Israel and threatening regional oil supplies. Additionally, Libya's largest oil field, Sharara, has announced a reduction in production due to protests and security issues."
"US natural gas futures rose above $2.08/MMBtu this morning due to forecasts of warmer weather in the coming weeks, which could increase gas consumption by power generators. Although some cooling is expected in the mid-continent due to Hurricane Debby, a broader trend of warmer temperatures across the US next week is expected to support prices. Export activity has also recovered, but high production levels, around 103 bcfd, may limit significant price increases and lead to larger storage injections. In August, gas output in the Lower 48 states averaged 103.8 bcfd, up from 103.4 bcfd in July but still below December's record of 105.5 bcfd."
Trading Economics
"WTI crude oil futures rose above $75 per barrel on Wednesday, continuing their upward trend after the EIA report showed a larger-than-expected drop in US crude oil inventories. Crude stocks fell for the sixth week, declining by 3.728 million barrels, much more than the anticipated 0.4 million barrel decrease. However, gasoline and distillate stockpiles increased during this period. Rising oil prices are also being driven by supply-side concerns. Tensions are escalating in the Middle East, with reports of Hamas appointing a new leader, Yahya Sinwar, potentially heightening conflict with Israel and threatening regional oil supplies. Additionally, Libya's largest oil field, Sharara, has announced a reduction in production due to protests and security issues."
"US natural gas futures rose above $2.08/MMBtu this morning due to forecasts of warmer weather in the coming weeks, which could increase gas consumption by power generators. Although some cooling is expected in the mid-continent due to Hurricane Debby, a broader trend of warmer temperatures across the US next week is expected to support prices. Export activity has also recovered, but high production levels, around 103 bcfd, may limit significant price increases and lead to larger storage injections. In August, gas output in the Lower 48 states averaged 103.8 bcfd, up from 103.4 bcfd in July but still below December's record of 105.5 bcfd."