Energy
Monday, July 8th, 2024 5:08 pm EDT
Key Points
- Impact of Tropical Storm Beryl: U.S. crude oil futures fell as traders monitored the effects of Tropical Storm Beryl, which made landfall in Texas as a Category 1 hurricane before being downgraded. Despite this, oil prices saw a fourth consecutive weekly gain.
- Energy Prices and Market Response: West Texas Intermediate crude for August fell to $82.82 per barrel, Brent crude for September decreased to $86.32 per barrel, and RBOB gasoline for August remained steady. Natural gas prices increased, while Shell shut down production on its Perdido platform due to the storm.
- Gasoline Prices and Future Projections: Current gasoline prices averaged $3.50 per gallon nationwide. Experts predict that prices could rise to around $3.60 per gallon due to market momentum, but unlikely to reach $4 per gallon unless there are significant disruptions during the hurricane season.
U.S. crude oil futures declined on Monday as traders assessed the impact of Tropical Storm Beryl on Gulf Coast refining, production, and export infrastructure. Beryl made landfall near Matagorda, Texas, as a Category 1 hurricane with maximum sustained winds of 80 miles per hour, but was later downgraded to a tropical storm with winds of 70 miles per hour. The storm is projected to weaken further as it moves northeast. Despite this, U.S. crude oil recorded a fourth consecutive weekly gain, even after hitting a two-month high of $84.52 per barrel earlier.
On Monday, West Texas Intermediate (WTI) crude for August delivery fell to $82.82 per barrel, down 34 cents or 0.42%, marking a 15.5% increase year-to-date. Brent crude for September delivery decreased by 22 cents to $86.32 per barrel, a 0.25% drop, yet has gained 12% year-to-date. RBOB gasoline for August remained steady at $2.55 per gallon, up 21.7% year-to-date, while natural gas for August rose by 5 cents to $2.37 per thousand cubic feet, though it is down 5.6% for the year.
Shell temporarily halted production and evacuated personnel from its Perdido platform, located about 200 miles south of Galveston, which was producing approximately 100,000 barrels per day, representing 5.5% of the Gulf of Mexico’s oil output. However, industry experts, including Andy Lipow of Lipow Oil Associates, suggested that the storm would have minimal impact on supply or prices, assuring consumers that gasoline availability would remain unaffected.
Lipow indicated that while refining operations might see a slight reduction and product deliveries to Florida could be delayed, gasoline prices are expected to stay stable through the storm. Post-storm, gasoline prices might increase marginally as crude oil futures have been on an upward trend. Concerns about this year’s hurricane season are heightened, with Colorado State University predicting an “extremely active” season.
As of Monday, average gasoline prices at the pump were about $3.50 per gallon nationwide, a cent higher than the previous week but three cents lower than the previous month, according to AAA. Denton Cinquegrana, chief oil analyst at Oil Price Information Service, forecasted that prices could rise to around $3.60 per gallon over the next few weeks, barring any significant disruptions. He mentioned that gasoline prices are unlikely to reach $4 per gallon unless extraordinary circumstances arise.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/08/crude-oil-prices-today.html
