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August 1st, 2016

Market Summary for the Week of July 25 - July 29, 2016

by Michelle Tham, Director of Analytics

Synopsis of Last Week's Energy Markets

WTI and Brent both continued to move downward last week, a general trend since late June. Both OPEC and the International 
Energy Agency lowered their 2015 global demand forecasts, and the EIA reported a forecast for a 1 million barrel increase in 
domestic production for 2015 over 2014 estimates. Natural gas prices capped a weekly gain last week on forecasts for lingering 
heat and on speculation that low gas prices will boost demand from electricity generators. Thursday's EIA storage report brought 
news of the largest gain in seven weeks, cutting the deficit to the five-year average levels to 14.2%

Crude oil tumbled last week as domestic storage levels unexpectedly gained. Global crude and gasoline stock levels also remain high, while previous production disruptions have receded, leading to a monthly loss of 15-16% for WTI and Brent in July. Natural gas prices climbed for the second straight week as below-average injections into storage continue to chip away at the surplus. Above-average cooling demand this summer has increased the use of natural gas as a power plant fuel.

To view the complete Market Summary, click here.

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