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First Look - Oil is trading higher, reversing some losses from yesterday | OPEC maintains 2024 demand forecast

Oil is trading higher, reversing some losses from yesterday
- In the Middle East, discussions of a ceasefire between Israel and Hamas will resume in Doha, with the US, Egypt, and Israel in attendance
- Inflation in China grew for a fifth straight month, but missed expectations, potentially signaling sluggish demand
OPEC maintains 2024 demand forecast (Reuters)
- In OPEC’s latest monthly report, they stuck to their view that oil demand growth in 2024 will remain relatively strong, driven by higher consumption of transportation fuels
- Global demand is expected to rise by 2.25 MMBbl/d in 2024 and 1.85 MMBbl/d in 2025
- Meanwhile, BP’s latest outlook was also released today with a forecast of peak oil demand in 2025, similar to the IEA view that global consumption will peak this decade

Natural gas prices trade sideways as higher production and a drop in LNG exports offset weather-related demand from the power sector
- Prompt gas was 0.4c lower to $2.34/MMBtu (As of 7:49 AM)
- The Summer ’24 strip is down 25.4c to $2.385 and Winter ‘24/’25 strip is down 16.8c to $3.308
- The European Ensemble forecasts a net 7.9-degree drop in Lower 48 temps, with significant cooling in the Northeast, Midwest, and South-Central regions, especially in the 11-15 day period
Greater Houston area recovering from Hurricane Beryl, but Freeport LNG flows remain low (NGI, Criterion)
- Freeport LNG's feed gas demand, dependent on the still-restoring electricity grid, rose to 149 MMcf/d from near-zero rates over the past three days, compared to the usual 1.7 Bcf/d
- Other facilities like Cheniere's Corpus Christi and Sabine Pass LNG remained operational with no disruptions
- CenterPoint Energy is working to restore power to over one million customers in Greater Houston, where high temperatures and humidity are expected throughout the week
- Additionally, operations at Enbridge’s Tres Palacios Gas Storage in Matagorda County resumed Tuesday after lifting a force majeure