Your Daily Energy Report for October 18, 2024
Posted on 2024-10-18
Crude Oil
Crude Oil futures for November settled down -$1.45 or -2.052% at $69.22. Oil prices dropped on Friday, marking its steepest weekly decline in over a month due to concerns about future demand and an anticipated oversupply. The International Energy Agency recently reduced its demand estimates, signaling the potential for an excess in global supply, while OPEC revised its forecasts downward for the third consecutive month, largely due to weaker demand from China. Additionally, China's recent housing policy briefing failed to meet market expectations, amplifying concerns about demand from the world’s largest importer. At the same time, investors continued to monitor supply risks in the Middle East, as Israeli forces confirmed the death of a top Hamas leader, heightening fears of regional conflict. Although Israel has indicated it will refrain from targeting Iran’s oil infrastructure, the ongoing airstrikes contribute to an uncertain situation. A surprise decrease in U.S. stockpiles, however, offered support to prices.
Natural Gas
Natural Gas futures for November settled down -$.089 or -3.792% at $2.258. Natural gas prices finished both the day and the week lower as short-term weather forecasts indicate subdued demand, while production levels continue to rise. Warmer-than-expected temperatures across much of the U.S. in October have been a key factor driving the recent weakness in natural gas prices. Traders are now assessing the pre-winter market conditions, with forecasts predicting milder weather for the rest of the month. This reduced demand for heating has kept prices relatively stable, fluctuating between slight gains and losses. On Thursday, the Energy Information Administration reported a 76 billion cubic feet (Bcf) increase in natural gas storage for the week ending October 11, which matched market expectations but was lighter compared to typical seasonal averages.