Your Daily Energy Report for October 17, 2024
Posted on 2024-10-17
Crude Oil
Crude Oil futures for November settled up $.28 or .398% at $70.67. Oil prices stabilized on Thursday after a four-day losing streak, as traders weighed risks from the Middle East conflict and underwhelming economic data from China, where housing market stimulus measures fell short of expectations. Oil prices have been declining this week after indications that Israel would likely refrain from targeting Iran’s oil infrastructure. However, U.S. airstrikes on Iran-aligned forces in Yemen and intensified Israeli military action in Lebanon kept attention on potential retaliatory actions. Meanwhile, the International Energy Agency forecasts a surplus in 2024, driven by rising oil output outside OPEC and sluggish demand growth. In the U.S., crude inventories dropped by 2.2 million barrels last week, marking the first reduction in three weeks. Oil output in North Dakota, the third-largest producing state in the U.S., fell by around 500,000 barrels through October, after wildfires crossed into key producing counties.
Natural Gas
Natural Gas futures for November settled down -$.02 or -.845% at $2.347. Natural gas prices give up intraday gains with weather forecasts still pointing to limited near-term demand. Utilities added 76 billion cubic feet of gas to storage for the week ending October 11, which is lower than the 93 bcf added during the same period last year and below the five-year average of 89 bcf. This follows a reduction in drilling by producers earlier this year. Despite this, gas inventories remain 4.6% above normal levels. Forecasters anticipate warmer-than-usual weather through November 1, with higher-than-expected demand, including exports, predicted for next week. LNG feedgas also reached a new eight-month high at 14.3 bcfd.