Your Daily Energy Report for October 1, 2024
Posted on 2024-10-01
Crude Oil
Crude Oil futures for November settled up $1.66 or 2.435% at $69.83. Oil prices jumped on Tuesday following Iran's launch of ballistic missiles at Israel in response to Israeli actions against Hezbollah in Lebanon. This led to heightened tensions in Israel, with alarms sounding and explosions heard in various regions including Jerusalem and the Jordan River valley, prompting residents to seek shelter. Analysts suggest that Israel may expand its military operations to target Iran directly. Concerns about potential disruptions to Iranian oil production or exports, which could exceed one million barrels per day, further supported the increase in prices. Additionally, optimism about the potential recovery of Libyan oil output influenced market sentiment earlier in the day. On Monday, Libya's eastern parliament approved a new central bank governor, signaling a step towards resolving the country's oil output crisis.
Natural Gas
Natural Gas futures for November settled down -$.027 or -.924% at $2.896. Natural gas prices declined slightly on Tuesday following reports suggesting potential production growth from the Matterhorn pipeline in the Permian Basin. This news highlighted increased supply pressures expected in October, which dampened market sentiment following a brief rally on Monday. Additionally, traders are reassessing the impact of current tropical storms in the Atlantic Ocean on the continental U.S., which is now projected to be less significant than initially anticipated. Meanwhile, Hurricane Helene has caused disruptions to energy production in the Gulf of Mexico, leading to widespread power outages and extensive flooding across the Southeast, affecting over two million people.