Your Daily Energy Report for September 26, 2024
Posted on 2024-09-26
Crude Oil
Crude Oil futures for November settled down -$2.02 or -2.899% at $67.67. Oil prices dropped more than 3% on Thursday after a report from the Financial Times suggested that Saudi Arabia, the world's leading crude exporter, is preparing to abandon its unofficial target price of $100 per barrel. This move is part of Saudi Arabia's plans to increase oil output, which aligns with upcoming decisions by OPEC members and their allies expected in December. Meanwhile, Reuters reported that OPEC+ is likely to proceed with an output increase in December, with some members expected to compensate for previous overproduction by implementing larger cuts starting in September and beyond. Additionally, top officials in China, the largest importer of crude oil globally, pledged to use fiscal measures to achieve this year's economic growth target of around 5%, signaling potential new stimulus efforts alongside measures announced earlier in the week.
Natural Gas
Gas futures for October settled down -$.052 or -1.972% at $2.585. Natural gas prices are declining on Thursday, amid the strengthening of Hurricane Helene, which is heading towards northwestern Florida. The storm is expected to affect demand more significantly than supply, with NatGasWeather.com noting that there has been some reduction in production in the Gulf of Mexico. The forecaster emphasizes that historical trends suggest the storm's impact will likely be bearish rather than bullish, although surprises could occur due to its intensity. According to the Bureau of Safety and Environmental Enforcement, approximately 363 million cubic feet per day of natural gas production has been halted, accounting for nearly 20% of offshore output.