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July 11th, 2016

Market Summary for the Week of July 4 - July 8, 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%

Prompt month WTI tumbled back into the $45 range last week as bearish fundamentals dominated market forces. The EIA reported a weekly decrease in crude supplies that was less than projections, and active oil rigs have climbed for five out of the last six weeks. Natural gas prices also fell last week. July domestic production rates have surpassed the June average so far, and revised mid-July forecasts pointed toward more moderate weather than previous forecasts.

To view the complete Market Summary, click here.

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