US oil inventory surges while Australia’s strike triggers LNG price jump

US oil inventories surged in the week ending August 4, with crude oil inventories increasing by 5.851 million barrels, surpassing market expectations of -17.049 million barrels. Gasoline stocks declined by -2.661 million barrels, while oil derivatives and products inventories fell by -1.706 million barrels. The US production rate of oil rose to 12.6 million barrels per day, compared to the expected rate of 12.2 million barrels per day.

European natural gas prices rose by about 40% on Wednesday due to concerns about potential disruptions in liquefied gas supplies from Australia. Dutch natural gas futures contracts for September delivery rose to 43 euros per megawatt-hour, the highest levels since mid-June.

The rise was driven by reports of Australian workers planning to strike for wage increases and job security, raising concerns about investments in natural gas futures. Despite high natural gas stocks in Europe, the energy crisis caused by the Russian invasion of Ukraine continues to raise concerns about the stability of natural gas supplies and stocks.