US Oil Consumption Slowed in June
September 3, 2024
The energy markets were mixed last Friday as we are coming to the end of the summer driving season. There are a lot of concerns and issues surrounding these markets and that has kept the markets in a trading range from some time now. Tons of uncertainty has left these markets balled up with no clear direction, trend, or conviction on the part of many traders and market participants.
The EIA reported that US oil consumption slowed in June to the lowest levels since the coronavirus pandemic of 2020. Products supplied of crude oil and petroleum products in June fell 2.7% on the month and 2.3% on the year to 20.25 million bpd in June.
Oil analysts are turning more bearish amid widespread concerns over the global demand outlook, with a survey compiled by The Wall Street Journal showing a downward revision in price estimates for this year and next.
US energy firms this week cut the number of oil and natural gas rigs operating for a third consecutive week for the first time since late June. Baker Hughes reported that the oil and gas rig count fell by two to 583 in the week ending August 30th, to their lowest level since June. Baker Hughes said oil rigs were unchanged at 483 this week, while gas rigs fell by two to 95, the lowest level since April 2021.
OPEC+ is set to proceed with a planned output hike starting in October. Eight OPEC + members are set to boost output by 180,000 bpd in October , as part of a plan to begin unwinding OPEC+’s most recent layer of output cuts of 2.2 million bpd while keeping their other cuts in place until 2025.
The increase expected to come from OPEC+ will help to offset the current loss of Libyan production.