Energy Futures Prices Are Down Again For The Fourth Consecutive Trading Session This Morning

Energy futures prices are down again for the fourth consecutive trading session this morning with the prompt month gasoline contract leading the way lower, currently trading ~1.5 cents below yesterday’s settlement. Heating and crude oil futures are drifting just on the red side of unchanged.

Unsure where crude oil prices are going for the next couple years? Don’t worry, the government is here to help. The EIA is estimating oil prices to be somewhere between $40 and $120 per barrel by 2026, as published yesterday in their Short Term Energy Outlook. While the usefulness of that estimate can be debated at length, some might rather turn their attention to the anticipated drop in disposable income spending on gasoline for 2024 and 2025.

OPEC published their monthly report this morning, highlighting their optimism for crude oil demand growth in 2024. Along with strong general economic growth, the cartel cites easing global inflation and an increase in travel for its sunny outlook on oil demand.

The American Petroleum Institute published their national inventory report yesterday afternoon, estimating a ~2 million barrel draw in crude oil stockpiles last week. Gasoline inventories are also down around 3 million barrels week over week, despite weak demand concerns. The Department of Energy will publish their official report at its regular time (9:30 CDT) this morning.

Colorado State University updated their 2024 hurricane forecast yesterday, bumping the number of anticipated named storms from 23 to 25 for the season. Every major metric CSU is forecasting (number named storms, hurricanes, major hurricanes, etc) is nearly double the observed 30-year average.

A Beryl-induced power outage knocked a portion of the Explorer pipeline offline early this week and has persisted through this morning. The section of pipeline running from Houston to Greenville TX will remain dormant until power is restored in the Pasadena area.

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