Lowering Natural Gas Prices Affects Oil Profits In 2024
Natural gas prices fell in 2024, with mixed earnings in the first quarter of 2024. The prices of natural gas were lower compared to 2023. However, the current condition of the natural gas market with falling prices impacts the profits of major oil companies in 2024.
The first quarter earnings in the major oil companies are much lower than the expectations in 2024. It is due to fluctuating natural gas prices since the beginning of 2024. Major oil and gas price measuring sites showed that lower natural gas prices affect the first quarter earnings 2024.
Natural gas prices also affected the refining margins in the first quarter earnings of 2024. Based on surveys from different oil measuring sites, one common factor that can be detected is the declining natural gas prices in 2024. In the United States, the oil market earnings fell to USD 8.2 billion in 2024 compared to first-quarter earnings of USD 11.4 billion in 2023. Experts suggest that first-quarter earnings have declined by USD 0.73 in 2024 compared to 2023. It is for the major oil companies in the United States; the earnings per share in the first quarter of 2024 is USD 2.06.
According to analysts, the current position of natural gas prices can be attributed to lower consumer demand and increasing inventory levels in 2024. With the fluctuating natural gas prices, the sector falls back by ten years in the economy. However, due to balanced market positions, the average crude oil prices are flat as the market refining margins are increasing. The refining margins are growing, driven by the strong demand for the product in 2024. However, the lower natural gas prices are hitting lows for the major oil companies in 2024.
