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September 6th, 2016

Market Summary for the Week of August 29 - September 2, 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 dropped sharply last week, declining for four straight days before recovering slightly on Friday. The EIA storage report showed another large increase in stocks while the market pared some of the gains that resulted from speculation of a joint production freeze by OPEC and Russia. Natural gas prices also fell last week, especially for the near-term contracts. Hurricane Hermine had a minimal impact on production from the Gulf of Mexico before moving up the Atlantic Coast, and the EIA reported a larger-than-expected gain in inventories.

To view the complete Market Summary, click here.

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