Daily Energy Report
Crude oil futures for August 2021 settled down $1.48 @ $71.65/bbl, trading in a $1.47 range including the overnight. RBOB settled down 4.32/cpg and heating oil settled down 3.09/cpg.
Approvals for companies to drill for oil and gas on U.S. public lands are on pace this year to reach their highest level since George W. Bush was president, underscoring President Biden’s reluctance to more forcefully curb petroleum production in the face of industry and Republican resistance. According to an analysis of government data, the Interior Department approved about 2,500 permits to drill on public and tribal lands in the first six months of the year. That includes more than 2,100 drilling approvals since Biden took office January 20. New Mexico and Wyoming had the largest number of approvals. Montana, Colorado and Utah had hundreds each.
Natural Gas Futures for August 2021 settled down $0.046 @ $3.614/mmbtu, trading in a .081 cent range including the overnight session.
According to Energy Information Administration data, U.S. working natural gas in storage ended the winter withdrawal season in March 2021 at 1.8 trillion cubic feet, slightly less than the five-year (2016–20) average. The EIA currently forecast that flat domestic natural gas production this summer combined with record U.S. natural gas exports will contribute to slightly lower than average inventory builds during the remainder of the summer build season ending in October. The EIA current forecast shows natural gas inventories end of October 2021 tally at 3.6 tcf, which is -3.0% lower than the five-year average.
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