Your Daily Energy Report for November 1, 2024
Posted on 2024-11-01
Crude Oil
Crude Oil futures for December settled up $.23 or .332% at $69.49. Oil prices rose on Friday, achieving a third day of gains despite a 3% decline over the week. This uptick is linked to market speculation regarding a possible reaction from Tehran to Israel's recent strikes. Investor sentiment remains wary, especially after Israel's military leader indicated a severe response to any additional missile attacks from Iran. The ongoing hostilities between Iran and Israel, characterized by air strikes and counterattacks, are part of the larger unrest in Gaza. As a significant member of OPEC, Iran produced approximately 4 million barrels per day in 2023 and is expected to export around 1.5 million barrels per day in 2024. The US has called on Lebanon to pursue a unilateral ceasefire with Israel to mitigate tensions, while Israel has ramped up airstrikes in southern Beirut. Additionally, oil prices are supported by speculation that OPEC+ might delay its planned production increase in December.
Natural Gas
Natural Gas futures for December settled down -$.044 or -1.625% at $2.663. Natural gas prices fell on Friday, due to decreased risk premiums and signs of sufficient domestic supply. Changing views on supply risks from the Middle East contributed to the downturn in natural gas futures across major trading centers, particularly after Israel targeted Iran’s oil infrastructure and Tehran has yet to respond with further attacks. Additionally, data from Wood Mackenzie indicated that US production reached 103 billion cubic feet per day in late October, close to record levels, coinciding with a substantial increase in reserves during the last week of the month, as EIA data revealed a 78 billion cubic feet build. Meanwhile, forecasts of milder cold weather in the Lower 48 states dampened demand for gas for heating, further putting downward pressure on prices.