Your Daily Energy Report for October 21, 2024
Posted on 2024-10-21
Crude Oil
Crude Oil futures for November settled up $1.34 or 1.936% at $70.56. Oil prices rose on Monday, recovering some of the previous week’s drop. Ongoing conflict in the Middle East and concerns about potential Israeli retaliation against Iran are creating supply worries. Reports indicate that Israeli forces intensified their operations in the northern Gaza Strip, targeting hospitals and shelters for displaced individuals. Additionally, Israel conducted targeted strikes on Hezbollah's financial locations in Lebanon. In economic news, China reduced its benchmark lending rates as expected, as part of a larger stimulus initiative aimed at revitalizing its economy. Recent data revealed that China's economy experienced its slowest growth since early 2023 in the third quarter, raising concerns about oil demand. Federal Reserve Bank President Neel Kashkari reiterated his expectation of "modest" interest rate reductions in the coming quarters, though he may support quicker cuts if labor markets weaken significantly.
Natural Gas
Natural Gas futures for November settled up $.054 or 2.391% at $2.312. Natural gas prices rose on Monday, bouncing back from a notable decline the previous week. This recovery is linked to decreased production levels and forecasts of cooler weather that may heighten heating demand. While meteorologists expect mostly warmer conditions until early November, the cooler temperatures anticipated next week are likely to drive up heating needs. In October, average gas production in the Lower 48 states has dropped to 101.5 bcfd, down from 101.8 bcfd in September. Meanwhile, gas flows to the seven major LNG export facilities in the U.S. have risen to an average of 13.1 bcfd this month, compared to 12.7 bcfd in September, although this remains below the record high of 14.7 bcfd set in December 2023.