Written on: July 1, 2024

Energy Price Report

Monday, July 1, 2024

Energy futures are trading higher on Monday amid gains in global equities and weakness in the US dollar index.  Market traders are looking ahead to US manufacturing and construction spending data for further direction.

Asian Markets

Asian shares closed higher overnight as the Nikkei added 0.12% and the Shanghai Composite rose 0.92%.  The Hong Kong Stock Exchange was closed for a holiday.  The S&P Global China Manufacturing PMI for June came in at 51.8, above forecasts at 51.2.  The final May Jibun Bank Manufacturing PMI for Japan came in at 50.0, down from 50.1 in May.  The Nikkei/S&P Global India Manufacturing PMI for June rose from 57.5 to 58.3, but this was still below the Econoday consensus at 58.5.

European Markets

In European news, the final S&P Global Manufacturing PMI for the Eurozone for June came in at 45.8, just above expectations at 45.6.  Indexes for both Germany and France beat the flash estimates by coming in at 43.5 and 45.4, respectively.  Also supportive, the German CPI rose 0.1% last month, below the 0.2% expectation.  In the UK, the final CIPS/S&P Global Manufacturing PMI missed forecasts by coming in at 50.9 (vs 51.4).  European shares were trading higher this morning.  The FTSE 100 was up 0.3%, the DAX had added 0.5%, and the CAC 40 had jumped 1.5% higher.  US stock market index futures were seeing gains of around 0.2% as of this writing.  Also supportive for crude oil prices, the US dollar index was down 0.1%.

Energy Futures

Energy futures closed flat to lower on Friday amid losses in global shares despite weakness in the US dollar index.  Brent crude edged up 2 cents to $86.41 a barrel whereas WTI crude fell 20 cents to close at $81.54 a barrel, gasoline futures settled 1.65 cents weaker at $2.5291 per gallon, heating oil futures fell 3.07 cents to $2.5169 per gallon and natural gas futures lost 8.4 cents to settle at $2.601 per MMBTU.

Hurricane Beryl

The National Hurricane Center is tracking Hurricane Beryl, which is moving towards the Windward Islands this morning.  Beryl could produce potentially catastrophic winds and life-threatening storms.  The NHC is also tracking Chris, which has weakened into a tropical depression, located in central Mexico.