Your Daily Energy Report for September 27, 2024
Posted on 2024-09-27
Crude Oil
Crude Oil futures for November settled up $.51 or .51% at $68.18. Oil prices showed a slight uptick on Friday, yet were on track for a weekly decline as investors considered the impact of potential increased global supply against new economic support measures from China, the world's largest importer of crude oil. The Chinese central bank implemented interest rate cuts and injected liquidity into the banking system on Friday, aiming to boost economic growth towards this year's target of approximately 5%. Additional fiscal actions are anticipated ahead of the Chinese holidays starting October 1, following a meeting among top Communist Party leaders who expressed heightened concern over growing economic challenges. Meanwhile, OPEC confirmed plans to gradually increase production by 180,000 barrels per day each month starting December. In the U.S., several operators have initiated the resumption of activities in the Gulf of Mexico after Hurricane Helene made landfall in Florida on Thursday night.
Natural Gas
Natural Gas futures for November settled up $.149 or 5.412% at $2.902. Natural gas prices jumped on Friday, marking their highest level in three months, driven by Hurricane Helene's impact on the Southeast. The storm prompted Gulf of Mexico producers to curtail output and caused widespread power outages in Florida, Georgia, and the Carolinas. Additionally, gas prices were bolstered by robust flows to Venture Global's Plaquemines LNG export facility in Louisiana, approaching mid-August peaks of 35 million cubic feet per day, although still well below its full capacity of 1.8 billion cubic feet per day. Helene's remnants will move from the Georgia-South Carolina border toward Tennessee and Kentucky. LNG operations remain unaffected, maintaining strong demand for natural gas.