Your Daily Energy Report for October 31, 2024
Posted on 2024-10-31
Crude Oil
Crude Oil futures for December settled up $.65 or .947% at $69.26. Oil prices increased on Thursday, bolstered by an unexpected decline in U.S. oil reserves and reports of a potential Iranian strike on Israel. According to EIA data, U.S. crude stockpiles decreased by 0.5 million barrels last week, contrary to forecasts predicting a 2.3 million barrel increase. Additionally, both gasoline and distillate inventories saw reductions during this timeframe. Reports indicate that Israeli intelligence has assessed a potential Iranian attack on Israel from Iraqi soil in the near future, possibly before the U.S. presidential election on November 5. This attack is anticipated to involve a significant number of drones and ballistic missiles launched from Iraq. Nonetheless, bearish sentiments persist due to sluggish demand from China, while investors are evaluating the supply outlook amid suggestions that OPEC+ might postpone the planned increase in oil production set for December by a month or longer.
Natural Gas
Natural Gas futures for December settled down -$.138 or -4.851% at $2.707. Natural gas prices declined on Thursday as insufficient weather-related demand overshadowed a weekly storage report that came in at the lower end of expectations. According to the EIA, gas inventories increased by 78 Bcf, reaching 3,863 Bcf for the week ending October 25. Analysts surveyed by the Wall Street Journal had predicted a build of 82 Bcf, with estimates ranging from 75 Bcf to 94 Bcf. With a warmer weather forecast leading to below-average demand and expected storage injections surpassing seasonal averages, the near-term outlook for U.S. natural gas prices appears negative. Unless colder weather patterns develop, a price rebound may be constrained as supply continues to exceed demand.