Pure Fuel Information: Rising Output and Weak Demand Maintain Strain on Bulls…

Rig counts assist this pattern: the energetic U.S. gasoline rig complete stays close to a two-year excessive, with Baker Hughes reporting 122 rigs final week. Whereas that’s barely beneath the latest peak of 124, it marks a gentle enhance from the Four-year low of 94 rigs recorded in late 2024.

Will Combined Climate and Tepid Demand Restrict Quick-Protecting Rallies?

A shift in short-term climate patterns additionally weighed on costs. Atmospheric G2 famous forecasts turned hotter within the West however cooler within the East for August 20–24, dampening the sooner bullish outlook primarily based on widespread warmth. Energy demand confirmed indicators of softening, with U.S. electrical energy output for the week ended August 9 falling 1.9% year-over-year, in accordance with Edison Electrical Institute knowledge.

Decrease-48 state gasoline demand stood at 80.three bcf/day final Friday, up simply 1.2% from a 12 months in the past, whereas LNG exports supplied modest assist at 15.7 bcf/day, up Four.eight% week-over-week.

How Are Inventories Shaping Dealer Sentiment?

Storage stays a headwind for bulls. Final week’s EIA report confirmed a +56 bcf construct, barely above expectations and effectively above the five-year common of +33 bcf. Inventories are actually 6.6% above the five-year seasonal norm, despite the fact that they continue to be 2.Four% beneath year-ago ranges.

European gasoline storage, a key benchmark for international provide consolation, was 72% full as of August 9, in comparison with a 5-year common of 79%, suggesting broader provide safety stays intact regardless of geopolitical considerations.

Market Forecast: Bearish Bias Holds Beneath $three.236