Your Daily Energy Report for September 23, 2024
Posted on 2024-09-23
Crude Oil
Crude Oil futures for November settled down -$.63 or -.887% at $70.37. Oil prices declined on Monday due to concerns over weakening demand, exacerbated by disappointing economic data from the euro zone and China. Business activity in the euro zone contracted unexpectedly this month, with the services sector stagnating and manufacturing showing a sharper downturn. In contrast, US business activity held steady in September, but there was a notable increase in prices charged for goods and services, suggesting potential inflationary pressures in the near future. China, the largest oil importer globally, is grappling with deflationary pressures and struggles to stimulate economic growth despite government efforts to boost domestic spending. Meanwhile, oil prices received some support from supply worries following Israeli airstrikes on Hezbollah targets on Monday. Israel, after nearly a year of conflict in Gaza, is now shifting attention to its northern border where Hezbollah has been launching rockets in support of Hamas.
Natural Gas
Natural Gas futures for October settled up $.086 or 3.663% at $2.434. Natural gas prices rose on Monday, marking their highest level in almost two months. The increase was driven by uncertainties surrounding supply levels and expectations of consistent demand. The National Hurricane Center highlighted the potential formation of a tropical depression or storm in the Gulf of Mexico in the upcoming days, posing a threat to US gas production. This concern was exacerbated by several producers remaining offline in the previous week due to Hurricane Francine. Furthermore, anxieties over reduced supply intensified following the latest EIA report, which revealed a storage increase of 40 billion cubic feet for the week ending September 6. This figure fell short of forecasts, last year's 50 billion cubic feet, and the five-year average of 67 billion cubic feet.