Your Daily Energy Report for October 9, 2024
Posted on 2024-10-09
Crude Oil
Crude Oil futures for November settled down -$.33 or -.449% at $73.24. Oil prices declined on Wednesday due to an increase in U.S. crude inventories, but were partially offset by concerns over potential disruptions to Iranian supply due to Middle East tensions and Hurricane Milton affecting U.S. oil operations. The Energy Information Administration reported a significant rise in crude inventories to 422.7 million barrels last week, surpassing expectations. Hurricane Milton, which is causing havoc in Florida, has heightened gasoline demand, leading to some fuel stations running out of stock and supporting crude prices. Meanwhile, markets remained wary of possible Israeli actions against Iranian oil infrastructure, following a drop in oil prices the previous day amid talks of a Hezbollah-Israel ceasefire. U.S. President Joe Biden discussed Israel's stance on Iran with Prime Minister Benjamin Netanyahu in a call, although specifics of their conversation were not disclosed by either government.
Natural Gas
Natural Gas futures for November settled down-$.073 or-2.671%at $2.66. Natural gas prices have declined as Hurricane Milton approaches Florida, raising concerns about potential damage and power outages that could dampen gas demand. However, upcoming heating needs in the coming week to ten days and the resumption of LNG exports from Cove Point LNG after maintenance are anticipated to bolster demand. Tomorrow’s EIA inventory report is expected to show further shrinkage in the surplus, with an injection of 70 Bcf into storage. In the near term, natural gas prices are expected to face downward pressure due to reduced demand caused by Hurricane Milton's impact on Florida, leading to lower electricity usage. Mild weather conditions prevailing across most of the United States also contribute to a bearish outlook for natural gas.