Energy
Friday, June 21st, 2024 3:16 pm EDT
Key Points
- Oil Market Performance: U.S. crude oil prices were poised for a second consecutive weekly gain, with a weekly increase exceeding 3.6%. This reflects stability in oil prices despite trading flat on Friday morning. Gasoline consumption surged to 9.4 million barrels per day in the U.S., marking the highest level for this time of year since the Covid-19 pandemic concluded, according to JPMorgan.
- Demand Outlook: JPMorgan anticipates further growth in U.S. gasoline demand following a steady rise since Memorial Day, with expectations heightened due to an estimated 71 million Americans traveling during the upcoming July 4th holiday. This robust demand underpins market optimism despite current flat trading in oil prices.
- Price Dynamics: Current energy prices include West Texas Intermediate (WTI) at $81.28 per barrel for the June contract, Brent at $85.68 per barrel for the August contract, RBOB gasoline at $2.51 per gallon for June, and natural gas at $2.72 per thousand cubic feet for July. These prices reflect varying changes, underscoring the ongoing strength in gasoline prices, up 19.5% year-to-date, amidst a backdrop of falling U.S. oil, gasoline, and distillate stocks, which could potentially lead to pump price increases.
U.S. crude oil prices showed resilience on Friday, heading for a second consecutive weekly gain amidst a surge in gasoline demand to pre-pandemic highs. Oil markets traded relatively flat during the morning session, yet recorded a weekly increase of more than 3.6%. JPMorgan reported a notable uptick in U.S. gasoline consumption, reaching 9.4 million barrels per day (bpd) last week, marking the highest level for this time of year since the onset of the Covid-19 pandemic. Analyst Prateek Kedia highlighted the continuous rise in gasoline demand since Memorial Day, forecasting further escalation with an anticipated record of 71 million Americans traveling over the upcoming July 4th holiday.
As of today, energy prices showed the following trends: West Texas Intermediate (WTI) for the June contract stood at $81.28 per barrel, a minimal 1 cent decrease, reflecting a year-to-date gain of 13.5%. Brent crude for the August contract traded at $85.68 per barrel, down 3 cents, with a year-to-date increase of 11.2%. RBOB gasoline prices for the June contract rose to $2.51 per gallon, marking a 0.58% increase and a year-to-date surge of 19.5%. Natural gas prices for the July contract settled at $2.72 per thousand cubic feet, down 0.02%, with an overall year-to-date rise of 8.3%.
Patrick De Haan, head of petroleum analysis at GasBuddy, cautioned that pump prices could climb further due to recent declines in U.S. oil, gasoline, and distillate inventories, signaling robust demand. Global oil demand has notably increased by 1.4 million bpd this month, driven by strong U.S. gasoline consumption and vigorous summer travel across Europe and Asia, according to JPMorgan. Although oil inventories saw a significant 15 million barrel increase in mid-June due to restocking in China, the investment bank anticipates drawdowns later in the summer season.
Looking ahead, JPMorgan projects a Brent crude price of $90 per barrel by September as market conditions tighten amid decreasing stockpiles and heightened summer fuel demand.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/06/21/crude-oil-prices-today.html
