Your Daily Energy Report for October 11, 2024
Posted on 2024-10-11
Crude Oil
Crude Oil futures for November settled down -$.29 or -.382% at $75.56. Oil prices surged decreased on Friday, as investors weighed the possible supply interruptions due to the conflict in the Middle East and the impact of Hurricane Milton on fuel consumption in Florida. Despite this dip, the U.S. benchmark achieved its second consecutive weekly increase and has risen over 10% since Iran launched a missile strike on Israel. The price hike has been driven by escalating geopolitical tensions, especially regarding Israel's potential response to the missile attack. Additionally, concerns about possible supply disruptions in the region have intensified the price increase. Hurricane Milton is expected to affect short-term fuel demand in Florida, although its long-term impact on consumption may be negative. On a positive note, demand prospects improved after China, the leading crude importer, introduced a draft law aimed at fostering private sector growth to enhance investor confidence amid economic challenges.
Natural Gas
Natural Gas futures for November settled down -$.043 or -1.607% at $2.632. Natural gas prices dropped on Friday, continuing a decline from a recent high of over $3 as strong supply overshadowed reduced demand caused by hurricanes in the Southeastern U.S. Recent EIA data revealed a significant increase in natural gas storage in the lower 48 states, rising by 82 billion cubic feet for the week ending October 4th—this was the largest increase since March and exceeded expectations of a 71 billion cubic feet rise. Additional downward pressure on prices came from the impact of Hurricane Milton on Florida’s Gulf Coast, leading to power outages and a decrease in electricity demand from gas-powered generators. These trends mirrored similar patterns observed after Hurricane Helene.