Your Daily Energy Report for September 13, 2024
Posted on 2024-09-13
Crude Oil
Crude Oil futures for October settled down -$.32 or -.464% at $68.65. Oil prices dipped on Friday following the resumption of crude production in the U.S. Gulf of Mexico after disruptions caused by Hurricane Francine, coupled with an increase in the country's rig count this week. As production and refining activities on the Gulf Coast returned to normal, investors chose to sell off oil contracts ahead of the weekend. Additionally, crude prices were impacted by the latest U.S. rig count data from Baker Hughes, which reported the largest weekly increase in oil and natural gas rigs in a year. Both OPEC and the IEA revised down their forecasts for demand growth this week, citing economic challenges in China, the world's largest oil importer. Meanwhile, U.S. oil inventories saw broad-based increases last week as crude imports rose, exports fell, and fuel demand softened, according to the EIA's report on Wednesday.
Natural Gas
Natural Gas futures for October settled down -$.052 or -2.206% at $2.305. Natural gas prices retreated from recent highs as traders opted to secure profits ahead of the weekend. Contributing factors to the gains earlier this week include limited production, escalating exports to Mexico, and heightened demand for electricity generation. Nevertheless, the primary influence stems from decreased gas injections into storage as the storage season nears its end. According to the EIA, storage levels saw a 40 bcf increase for the week ending September 6, which fell short of projections, last year's 50 bcf, and the five-year average of 67 bcf. Producers are projected to further diminish output in late 2024 subsequent to a 40% decline in prices over the past two months, estimates suggest a nearly 50% reduction in production.