Your Daily Energy Report for October 24, 2024
Posted on 2024-10-24
Crude Oil
Crude Oil futures for December settled down -$.58 or -.82% at $70.19. Oil prices dipped closer to $70 per barrel on Thursday, continuing a downward trend following a 1.4% decline in the previous session, driven by worries about oversupply. The latest EIA report revealed an unexpected increase of 5.5 million barrels in crude inventories, along with a rise of 900,000 barrels in gasoline stocks instead of a decrease. Furthermore, crude oil demand in China, the leading global importer, has declined despite government efforts to stimulate the economy. Concerns about a potential surplus in the global oil market in the upcoming quarters have also weighed on prices. On a positive note, U.S. refinery activity has reached its highest seasonal level in six years. Meanwhile, in the Middle East, a spokesperson for the Israeli Prime Minister announced that the Mossad chief will meet with officials from Qatar, Egypt, and the U.S. next week, which has alleviated fears of escalating regional tensions.
Natural Gas
Gas futures for November settled up $.18 or 7.686% at $2.522. Natural gas prices experienced their largest single-day increase since February, despite a larger-than-anticipated increase in underground storage. The market is focusing on potential winter weather to drive demand, while producers are taking a cautious approach before increasing production. Additionally, rising global gas prices are likely to enhance U.S. liquefied natural gas (LNG) exports. However, the EIA report indicated that utilities added less gas to storage than usual, continuing a trend of smaller additions over the past 14 weeks due to decreased drilling this year. Last week, U.S. utilities added 80 billion cubic feet (bcf) to storage, which is higher than the five-year average of 76 bcf, resulting in stock levels being 4.6% above the norm for this time of year.