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July 5th, 2016

Market Summary for the Week of June 27 - July 1, 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 prices climbed last week as the bearish effects of the Brexit vote on global economic markets wore off and energy commodities refocused on fundamentals. Above-average gasoline demand is driving up refining rates, leading to a large decrease in domestic stocks. Natural gas prices also climbed last week. Weather forecasts continue to call for above-normal temperatures for the Eastern US, driving up demand for gas going to power generation. Furthermore, a large explosion of at gas processing facility on the Gulf Coast impacted production.  

To view the complete Market Summary, click here.

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