Your Daily Energy Report for September 30, 2024
Posted on 2024-09-30
Crude Oil
Crude Oil futures for November settled down -$.01 or -.015% at $68.17. Oil prices remained mostly steady on Monday amid worries that an expanding conflict in the Middle East might disrupt Iranian crude supplies. However, they are still on track for a third consecutive monthly decline due to fears of decreasing global demand. The rise in prices was influenced by concerns that Iran, a major oil producer and OPEC member, could become more involved in the ongoing conflict. Recently, Israel has intensified its military actions, targeting leaders from Hezbollah and Hamas in Lebanon and Houthi positions in Yemen, all of which are supported by Iran. Additionally, the market reacted tepidly to China's announcement of economic stimulus measures, as it remains the second-largest economy and leading oil importer. Last week, prices fell in response to reports that Saudi Arabia might abandon its informal target of $100 per barrel while preparing to boost production.
Natural Gas
Natural Gas futures for November settled up $.021 or .724% at $2.923. Natural gas prices on rose Monday, marking a 35% increase for September, the largest since July 2022. Output saw a slight uptick as Gulf of Mexico production resumed post-Hurricane Helene. However, demand projections for the next two weeks were adjusted downward, influenced by decreased gas consumption by electricity producers due to power outages affecting over 2 million homes and businesses in the Southeast and Midwest after the storm. Meanwhile, overall demand, including exports, is anticipated to climb from 95.9 bcfd this week to 96.6 bcfd next week, although this is lower than earlier forecasts. Lastly, deliveries to US LNG export facilities eased to 12.7 bcfd in September from 12.9 bcfd in August, attributed in part to planned maintenance at Cove Point LNG.