Your Daily Energy Report for November 4, 2024
Posted on 2024-11-04
Crude Oil
Crude Oil futures for December settled up $1.98 or 2.849% at $71.47. Oil prices jumped on Monday after OPEC+ revealed its decision to delay planned output hikes by one month. The organization stated it would continue its existing production cut of 2.2 million barrels per day (bpd) through December, deferring a previously scheduled increase of 180,000 bpd due to declining prices and soft demand. Additionally, markets are wary of possible retaliatory action from Iran against Israel in the coming days. Investors are also closely watching the U.S. presidential election on Tuesday, with polls showing a tight contest between Democratic Vice President Kamala Harris and former Republican President Donald Trump. Economists are also expecting the U.S. Federal Reserve to implement a 25 basis points rate cut on Thursday. Meanwhile, China's National People’s Congress is set to convene this week to discuss potential new stimulus measures to counter the slowing economy and address local government debt concerns.
Natural Gas
Natural Gas futures for December settled up $.118 or 4.431% at $2.781. Natural gas prices experienced an uptick after three previous declines, as the market remained focused on potential colder winter conditions to boost demand. While fundamentals were mixed, demand indicators saw gains. Production levels held steady at 101.3 Bcf/d, matching last Friday's figures, while LNG demand climbed back to 13.2 Bcf/d based on early reports. Additionally, market participants are keeping a close watch on a late-season tropical disturbance in the Caribbean, forecasted to approach the U.S. Gulf Coast by late week. Meanwhile, Canada unveiled a proposal on Monday for a cap-and-trade system aimed at significantly reducing greenhouse gas emissions in the oil and gas industry. The system, targets a 27% reduction from 2026 levels or a 35% reduction compared to 2019 levels.