Your Daily Energy Report for September 12, 2024
Posted on 2024-09-12
Crude Oil
Crude Oil futures for October settled up $1.56 or 2.373% at $68.97. Oil prices rose on Thursday as producers evaluated the impact on production in the U.S. Gulf of Mexico following Hurricane Francine's passage through offshore oil-producing regions, later downgraded to a tropical storm. The U.S. Bureau of Safety and Environmental Enforcement reported that over 730,000 barrels per day, or nearly 42% of Gulf of Mexico oil production, was halted due to the storm. By Thursday, oil and fuel export terminals from southern to central Texas had resumed operations, and refineries were gradually increasing their output. Concerns persist about sluggish global oil demand, particularly from major importer China, which has been a significant factor in keeping prices under pressure. Earlier in the week, Brent crude futures settled close to a three-year low after the OPEC+ alliance lowered its forecasts for annual demand growth for the second consecutive month..
Natural Gas
Natural Gas futures for October settled up $.038 or 1.703% at $2.357. Natural gas prices climbed on Thursday, reaching a nearly two-month peak. This increase followed a report from the EIA indicating a storage build of 40 billion cubic feet, which was smaller than the anticipated 49 bcf. Despite this lower build, current storage levels stand at 9.6% above the five-year average, highlighting an ongoing surplus in supply. Traders are also assessing the impact of Hurricane Francine, which disrupted oil and gas operations in the Gulf of Mexico. The storm made landfall in southeast Louisiana, southern Mississippi, and Alabama, leading to flooding, power outages, and reduced gas demand due to constrained flows to LNG export terminals. Feedgas flows are expected to decline further as companies scale back operations in response to the storm.