Your Daily Energy Report for October 8, 2024
Posted on 2024-10-08
Crude Oil
Crude Oil futures for November settled down -$3.57 or -4.628% at $73.57. Oil prices fell on Tuesday due to news suggesting a potential easing of tensions between Hezbollah and Israel, although concerns about possible disruptions to Iranian oil facilities provided some support. Hezbollah indicated willingness to consider a ceasefire following increased Israeli military activity in southern Lebanon. Israeli Defense Minister Yoav Gallant hinted at the possible elimination of Hezbollah's new leader following the death of Sayyed Hassan Nasrallah. Meanwhile, Israel's military advised evacuation of specific buildings in Beirut's southern suburbs late on Tuesday. Analysts doubted the likelihood of an attack on Iranian oil infrastructure, cautioning that oil prices could decrease significantly if Israel shifts its focus elsewhere. In the United States, Hurricane Milton strengthened into a Category 5 storm on its path towards Florida, having already compelled the closure of at least one oil and gas platform in the Gulf of Mexico.
Natural Gas
Natural Gas futures for November settled down -$.013 or-.473% at $2.733. Natural gas prices dropped as Hurricane Milton approached Florida, sparking concerns about potential disruptions to both demand and production. Prices had surged to a three-month high around the $3 mark last week but declined sharply ahead of the storm's formation. Hurricane Milton, currently a Category 2 storm, is anticipated to strengthen further and is projected to hit Florida's Gulf Coast by midweek, prompting evacuation advisories. The cooling effect of Hurricane Milton and subsequent power outages are expected to further dampen demand, thereby exerting downward pressure on prices. The EIA forecasts an increase in natural gas prices by 2025, driven by a rise in LNG exports of approximately 2 billion cubic feet per day, while US consumption remains steady at around 89 Bcf/day.