Your Daily Energy Report for October 25, 2024
Posted on 2024-10-25
Crude Oil
Crude Oil futures for December settled up $1.59 or 2.265% at $71.78. Oil prices climbed on Friday, recovering from a two-day drop and achieving a weekly increase of 3.7%. Market participants are closely watching the ongoing conflicts in the Middle East, ceasefire discussions, and the forthcoming U.S. elections. The potential negotiations between Israel and Hamas regarding the Gaza situation have created unease among traders about possible Israeli actions against Iran. Additionally, investors are attentive to any output changes from OPEC+ and the implications of the U.S. elections. The oil market has faced considerable fluctuations due to Middle Eastern tensions and fears of a supply surplus from rising production in non-OPEC+ nations, as well as OPEC's plans to ease production limits. Looking ahead, investors will also monitor Japan's elections, key interest rate decisions from three major central banks, and the announcement of the new UK government's budget.
Natural Gas
Natural Gas futures for November settled up $.038 or 1.507% at $2.56. Natural gas prices increased for the third consecutive session, finishing the week up 13%. This rise was likely supported by short selling and a shift towards cooler temperature forecasts. Despite a larger-than-expected injection reported in the weekly inventory data, the market remained unfazed. The EIA noted an injection of 80 billion cubic feet (Bcf)for the week ending October 18, raising total gas in storage to 3,785 Bcf, well above analysts' predictions and the five-year average, which weighed on market sentiment. On the supply side, U.S. natural gas production held steady at 101.5 Bcf per day, with a slight decline of 0.9% attributed to lower imports from Canada. Additionally, Baker Hughes indicated a drop in the natural gas rig count, which decreased by two to a total of 99 rigs as of October 15.