Your Daily Energy Report for October 23, 2024
Posted on 2024-10-23
Crude Oil
Crude Oil futures for December settled down -$.97 or -1.352% at $70.77. Oil prices decreased on Wednesday following reports of a larger-than-anticipated increase in U.S. crude inventories, despite a rebound in refining activity. However, futures remain higher for the week as traders consider the ongoing conflicts in the Middle East. The EIA indicated a 5.5 million barrel increase in crude stockpiles, significantly surpassing expectations, while gasoline inventories also rose by 900,000 barrels, contrary to forecasts of a decline. Nevertheless, the impact of these inventory changes on prices was somewhat offset by persistent concerns about potential supply disruptions linked to the Middle East conflicts. Market sentiment is heightened as Israel continues its operations in Gaza and Lebanon, while also preparing for a response to Iran's missile strike.
Natural Gas
Natural Gas futures for November settled up $.031 or 1.341% at $2.342. Natural gas prices have increased in anticipation of an upcoming weekly inventory report, which is expected to show a reduction in the surplus from 163 Bcf to 143 Bcf. Analysts surveyed by the Wall Street Journal predict that natural gas storage likely rose by 56 Bcf to reach 3,761 Bcf, which is below the five-year average injection of 76 Bcf for this time of year. Ongoing weak domestic demand and a decline in liquefied natural gas (LNG) exports are putting continuous pressure on prices. This decline is attributed to maintenance work at the Cameron LNG facility in Louisiana, which has limited its operational capacity. The decrease in exports removes an important support factor for natural gas prices, particularly during periods of lower domestic consumption.