Your Daily Energy Report for October 14, 2024
Posted on 2024-10-14
Crude Oil
Crude Oil futures for November settled down -$1.73 or -.2.29% at $73.83. Oil prices dropped on Monday amid worries about China's economic slowdown. Investor disappointment followed China's Finance Ministry briefing on Saturday, which did not introduce significant new fiscal stimulus, despite earlier assurances of support for the property market and possible increased borrowing. China's inflation rate also decreased in September, raising concerns about weakened fuel demand in the world’s largest crude importer. These apprehensions overshadowed worries about potential disruptions in oil supply from a potential Israeli response to Iran’s October 1 missile strike, despite U.S. warnings to Israel against targeting Iranian energy facilities. Meanwhile, the dollar reached a nine-week peak on Monday in light trading. A stronger U.S. currency can dampen demand for dollar-denominated oil among buyers using other currencies.
Natural Gas
Natural Gas futures for November settled down-$.138 or -5.243% at $2.494. Natural gas prices fell sharply on Monday, extending last week’s downward trend due to increased production and limited short-term weather-related demand, except for a brief cold spell expected in the Midwest and Northeast midweek. Hurricane Milton significantly influenced market movements last week, particularly early on, causing substantial demand reduction as the Category 4 storm approached Florida. Nearly 3.4 million homes and businesses lost power, leading to a sharp drop in natural gas usage for electricity generation. According to the EIA, storage levels saw an 82 Bcf injection, bringing total working gas in storage to 3,629 Bcf. A cold snap this week into the Midwest and Northeast is expected to be countered by comfortable temperatures in Texas and the South.