Your Daily Energy Report for October 10, 2024
Posted on 2024-10-10
Crude Oil
Crude Oil futures for November settled up $2.61 or 3.564% at $75.85. Oil prices surged on Thursday, driven by an increase in fuel consumption in the U.S. ahead of Hurricane Milton's impact in Florida, as well as concerns over Middle Eastern supply and potential rising energy demand in the U.S. and China. The hurricane caused significant disruption, with around 25% of gas stations running out of fuel and over 3.4 million homes and businesses losing power. Earlier this month, prices spiked after Iran fired over 180 missiles at Israel on October 1, raising fears of possible retaliatory actions against Iranian oil facilities. Despite Israel's lack of response so far, crude prices have stabilized and remained steady throughout the week. Meanwhile, China introduced a draft law to encourage private sector growth, aiming to enhance investor confidence during an economic downturn, which could increase oil demand in the world’s second-largest oil consumer.
Natural Gas
Natural Gas futures for November settled up $.015 or .564% at $2.675. Natural gas prices ended a four-day decline, despite a larger-than-anticipated inventory increase of 82 billion cubic feet last week and concerns about reduced demand due to Hurricane Milton causing widespread power outages in central Florida. Recent EIA data revealed that natural gas storage levels in the contiguous U.S. rose by 82 Bcf for the week ending October 4, marking the largest increase since March and significantly surpassing the expected 71 Bcf. Since June, natural gas has represented 46% of total electricity generation in the U.S., reaching record demand levels despite efforts to reduce fossil fuel reliance. The U.S. now contributes to 30% of global gas-generated electricity, largely due to heightened demand from utility companies.