Your Daily Energy Report for September 24, 2024
Posted on 2024-09-24
Crude Oil
Crude Oil futures for November settled up $1.19 or 1.691% at $71.56. Oil prices rose on Tuesday, reaching their highest point in three weeks. This increase was driven by news of monetary easing from China, the leading importer of crude, and concerns about escalating tensions in the Middle East potentially impacting supply. However, oil markets later receded as it became evident that an approaching hurricane was likely to bypass most offshore oil and gas production areas in the U.S. Gulf Coast, instead affecting Florida. This region is responsible for 15% of the nation’s oil and 2% of its natural gas output. China announced its most significant stimulus package since 2020, aiming to revitalize the economy and align it with growth targets. Analysts cautioned that additional fiscal support is necessary to achieve these objectives. In the Middle East, an Israeli airstrike in Beirut resulted in the death of a Hezbollah commander, amid increasing rocket attacks from both sides heightening fears of a broader conflict.
Natural Gas
Natural Gas futures for October settled down -$.062 or -2.373% at $2.551. Natural gas prices declined after a three consecutive sessions of gains. The market remains tight due to reduced production, even as LNG feedgas has decreased with Cove Point LNG in Maryland undergoing maintenance. According to NatGasWeather.com, trade is expected to be volatile in the coming days as a significant hurricane approaches northwest Florida and Georgia, potentially causing extensive damage and flooding. This storm, named Tropical Storm Helene, originated in the Caribbean and is heading toward the Gulf of Mexico. The Bureau of Safety and Environmental Enforcement reported that approximately 208 million cubic feet of offshore gas production has been curtailed due to platform evacuations. The front-month contract on the Nymex closed down 2.4% at $2.551/mmBtu.