Your Daily Energy Report for September 10, 2024
Posted on 2024-09-10
Crude Oil
Crude Oil futures for October settled down -$2.96 or -4.308% at $65.75. On Tuesday, WTI crude futures saw a decline to their lowest levels since May 2023. The drop coincided with OPEC's latest monthly report, which adjusted its forecast for world oil demand growth in 2024 to 2.03 million bpd, down from the previous month's projection of 2.11 million bpd. OPEC also revised down its estimate for global demand growth in 2025 to 1.74 million bpd from 1.78 million bpd. Prices fell amid concerns about weakening global demand and the potential for an oversupply of oil. Additionally, Tropical Storm Francine caused disruptions in the Gulf of Mexico, prompting operators to shut down about a quarter of offshore crude production, as reported by the U.S. Bureau of Safety and Environmental Enforcement on Tuesday. The Gulf of Mexico region contributes approximately 15% of all U.S. domestic oil production and 2% of natural gas output, according to federal data.
Natural Gas
Natural Gas futures for October settled up $.062 or 2.857% at $2.232. Natural gas prices rose due to expectations surrounding tropical storm Francine, which is anticipated to temporarily affect offshore production and potentially cause power outages. The storm's center is forecasted to pass Texas and reach Louisiana as a hurricane by Wednesday, according to the National Hurricane Center. However, Francine is also expected to lead to cooler temperatures, impacting demand negatively. Warmer weather forecasts for the upcoming weekend and beyond are projected to increase demand, gradually reducing the surplus in storage. The Energy Information Administration (EIA) reported a storage injection of 13 Bcf for the week ending August 30, bringing total storage to 3,347 Bcf.