Your Daily Energy Report for September 9, 2024
Posted on 2024-09-09
Crude Oil
Crude Oil futures for October settled up $1.04 or 1.537% at $68.71. Oil prices increased on Monday amid concerns that an impending hurricane could disrupt operations in Louisiana and along the U.S. Gulf Coast. Oil and gas companies in the region began evacuating personnel and scaling back drilling activities in preparation for Tropical Storm Francine, which was moving across the Gulf of Mexico. The Gulf Coast region accounts for roughly half of the nation's refining capacity, according to the EIA. Meanwhile, in Libya, an OPEC member, the National Oil Corp declared force majeure on multiple crude shipments from the port of Es Sider due to political tensions surrounding the central bank and oil revenue. In economic news, U.S. Federal Reserve policymakers have indicated readiness to initiate a series of interest rate reductions at the upcoming Sept. 17-18 meeting, citing cooling trends in the labor market that could worsen without lower borrowing costs.
Natural Gas
Gas futures for October settled down -$.105 or -4.615% at $2.17. Natural gas prices dropped on Monday due to an anticipated storm approaching Louisiana. This weather event is expected to disrupt energy demand by potentially causing power outages and impacting LNG exports. According to the National Hurricane Center, a hurricane is forecasted to develop in the Gulf of Mexico and make landfall in Louisiana, where several major LNG facilities are located. Unlike previous hurricanes that posed threats to supply primarily from offshore production, today's storms predominantly affect demand. This shift is notable as most of the US natural gas supply now originates from inland shale basins such as Appalachia and the Permian. Additionally, prices have been under pressure due to an oversupply of gas following a mild winter.