Your Daily Energy Report for October 7, 2024
Posted on 2024-10-07
Crude Oil
Crude Oil futures for November settled up $2.76 or 3.711% at $77.14. Oil prices continued their ascent on Monday amid heightened concerns over the potential escalation of regional conflict in the Middle East, prompting investors to rethink their previously pessimistic market positions established last month. Incidents involving rockets fired by Iran-backed Hezbollah striking Haifa, Israel's third-largest city, and an intercepted missile launched from Yemen towards central Israel added to the geopolitical tensions. Israel indicated readiness to potentially expand its military operations into southern Lebanon, coinciding with the first anniversary of the Gaza conflict, which has contributed to widespread unrest throughout the region. OPEC and its allies, collectively known as OPEC+, are scheduled to begin increasing oil production from December onwards, following years of production cuts aimed at stabilizing prices amidst subdued global demand.
Natural Gas
Gas futures for November settled down -$.108 or -3.784% at $2.746. Natural gas prices dropped on Monday due to the approach of Hurricane Milton toward Florida. This raised concerns about potential disruptions to both natural gas demand and production. Last week, natural gas prices had surged to $3 per unit, marking a three-month high, but they retreated sharply as Hurricane Milton formed. The hurricane, currently a Category 2, is expected to intensify further and is projected to make landfall on Florida’s Gulf Coast by midweek, prompting evacuation advisories. Meanwhile, recovery efforts are ongoing in the aftermath of Category 4 Hurricane Helene, with 275,000 customers in the Southeast still without power. Despite these weather events, national natural gas demand is anticipated to remain subdued over the next 15 days.