Energy
Wednesday, July 3rd, 2024 2:20 pm EDT
Key Points
- Crude oil futures remained stable as traders awaited U.S. inventory data to gauge gasoline demand, with U.S. crude oil prices rising about 6% last month due to expectations of increased summer fuel demand and stockpile drawdowns.
- Current energy prices include West Texas Intermediate at $82.86 per barrel (up 15.7% year-to-date), Brent at $86.32 per barrel (up 12% year-to-date), RBOB Gasoline at $2.56 per gallon (up 21.6% year-to-date), and Natural Gas at $2.44 per thousand cubic feet (down 2.7% year-to-date).
- Hurricane Beryl could impact the Texas Gulf Coast, with its effects on the oil market uncertain due to the U.S.’s reduced dependence on offshore oil production; refinery shutdowns could potentially decrease demand, affecting market dynamics.
Crude oil futures remained stable on Wednesday as traders awaited the latest U.S. inventory data for insights into gasoline demand trends. In June, U.S. crude oil prices rose approximately 6%, driven by expectations of a tighter market in the third quarter due to anticipated stockpile drawdowns and increased summer fuel demand. The Department of Energy was set to release updated data on U.S. crude oil and gasoline stockpiles at 10:30 a.m. ET. Currently, gasoline prices are averaging $3.51 per gallon, a slight increase from the previous week, according to the AAA.
As of Wednesday, energy prices showed slight movements. The West Texas Intermediate (WTI) August contract was priced at $82.86 per barrel, reflecting a year-to-date gain of 15.7%. The Brent September contract stood at $86.32 per barrel, with a year-to-date increase of 12%. The RBOB Gasoline August contract was at $2.56 per gallon, despite a 0.68% decline, it has risen 21.6% year to date. The Natural Gas August contract was priced at $2.44 per thousand cubic feet, showing a 0.41% increase but down 2.7% year to date.
In weather-related news, Hurricane Beryl was moving through the Caribbean and was forecasted to potentially impact the Texas Gulf Coast as a tropical storm by Saturday. The National Hurricane Center noted that the forecast remained uncertain. Helima Croft, global head of commodity strategy at RBC Capital Markets, highlighted the evolving impact of hurricanes on the oil market. She explained that hurricanes are no longer seen as clear bullish indicators for oil prices due to the U.S.’s decreased reliance on offshore oil production. In contrast, refinery shutdowns due to hurricanes could restrict demand and be bearish for the market. Croft discussed these dynamics on CNBC’s “Last Call” on Tuesday evening, noting that the previously straightforward relationship between hurricanes and oil market movements has become more complex.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/03/crude-oil-prices-today.html
