On April 14, 2024, the Elk Hills Oil Field in California showcased oil wells in action as gas prices continued to rise. The view served as a stark reminder of how the changing economic landscape is impacting the oil industry. The disappointing U.S. economic growth in the first quarter, which came in at 1.6% compared to the expected 2.4%, led to a decline in crude oil futures, with slower economic growth having a negative effect on crude oil demand and influencing prices.
In other news, the West Texas Intermediate June contract closed at $82.45 a barrel, down 0.43%, while the Brent June contract closed at $87.62 a barrel, down 0.45%. The RBOB Gasoline May contract was priced at $2.72 a gallon, down 0.36%, and the Natural Gas May contract was $1.62 per 1,000 cubic feet, down 1.63%. Oil prices closed lower on Wednesday, marked by a slightly bearish market with global inventories on the rise.
Geopolitical risks impacting oil prices have decreased as tensions between Israel and Iran eased thanks to analysts at Piper Sandler’s insights into current market trends and conditions. The market is currently moving sideways with limited downside risk as Piper has lowered their odds of a U.S recession to a coin flip citing low unemployment and stable sentiment while also expecting growing demand for oil as refiners continue operating near capacity with minimal capacity additions