Your Daily Energy Report for October 15, 2024
Posted on 2024-10-15
Crude Oil
Crude Oil futures for November settled down -$3.25 or -4.402% at $70.58. Oil prices slumped on Tuesday, there were indications that Israel might shift its focus away from targeting Iran’s oil infrastructure, which eased concerns about potential disruptions to regional supply. Israel appears to be considering US advice to prioritize military targets over energy installations in Iran, though tensions remain elevated. Additionally, the IEA revised down its forecasts for demand growth, citing near-record spare capacity within OPEC+ and slowing consumption in key markets such as China. Chinese oil demand continues to show weakness, with a decline of 500,000 bpd in August, marking the fourth consecutive monthly decrease. Meanwhile, crude production in the Americas is forecasted to rise by 1.5 million bpd this year and next. On Monday, OPEC revised down its global oil demand projections for 2024 and 2025 for the third consecutive month.
Natural Gas
Natural Gas futures for November settled up $.004 or .16% at $2.498. Natural gas prices are seeing slight gains this week due to cold weather affecting the Midwest and Northeast, followed by milder conditions later in October. Recent selling pressure was influenced by increased production and reduced demand caused by hurricanes. Analysts observe cautious sentiment in the market overall, but the current cold snap is offering some support. Looking forward, experts anticipate that U.S. natural gas exports, particularly through LNG, will drive demand growth. According to the EIA, U.S. LNG exports are expected to increase from 12.1 Bcf/d in 2024 to 13.8 Bcf/d in 2025. Several new LNG export facilities, such as Plaquemines LNG and Corpus Christi LNG Stage 3, are slated to begin operations by the end of 2024.