Your Daily Energy Report for October 30, 2024
Posted on 2024-10-30
Crude Oil
Crude Oil futures for December settled up $1.40 or 2.083% at $68.61. Oil prices increased on Wednesday, recovering from a seven-week low of the previous day. This rise came after an unexpected decrease in U.S. crude inventories, while the market continued to navigate ongoing geopolitical tensions. Recent EIA data indicated a reduction of 515,000 barrels in U.S. crude stockpiles for the week ending October 25, contrasting with predictions of a 2.3 million barrel increase based on earlier industry reports. Additionally, prices received support from a warning by Israel’s military leader to retaliate strongly against Iran in response to potential missile attacks. However, crude oil prices remained significantly below the October peak of $77 per barrel. In China, reduced fuel consumption stemming from waning demand for manufactured goods led refiners to contend with an oversupply of crude oil, creating challenges for various private companies facing negative profit margins despite obtaining discounted oil from Iran.
Natural Gas
Natural Gas futures for December settled down -$.014 or -.49% at $2.845. Natural gas prices fell on Wednesday, reflecting a trend seen in other energy markets as supply worries diminished after Israel’s retaliatory actions against Iran, which intentionally avoided targeting crude oil and nuclear facilities. Meteorologists also predict warmer-than-usual temperatures across the contiguous U.S. through at least November 9, enabling utilities to store more gas than typically expected at this time of year. Furthermore, LNG feedgas supply is anticipated to remain below peak levels for the next few weeks due to maintenance work at Louisiana facilities, including those operated by Cheniere Energy and Cameron LNG. On the supply side, average natural gas production in 2024 is expected to decrease for the first time since 2020.