Your Daily Energy Report for November 11, 2024
Posted on 2024-11-11
Crude Oil
Crude Oil futures for December settled down -$2.34 or -3.325% at $68.04. Oil prices fell on Monday, as China’s economic stimulus efforts fell short of expectations, raising concerns about demand from the world’s second-largest oil consumer. Market sentiment was further dampened by the political uncertainty following Donald Trump’s election win and his support for expanded drilling. Additionally, the strength of the US dollar made oil more expensive for holders of other currencies, adding downward pressure on prices. Weak economic data from China sparked fears of deflation, further darkening the demand outlook. At the same time, concerns over rising supply from non-OPEC producers and ongoing challenges for OPEC+ in managing production to stabilize the market contributed to investor anxiety. Traders are closely watching the global demand forecast for 2025, the potential effects of Trump’s policies, and increasing geopolitical tensions, particularly between Israel and Iran.
Natural Gas
Natural Gas futures for December settled up $.251 or 9.404% at $2.92. Natural gas prices surged on Monday, as production in the Gulf of Mexico continued to be impacted by Storm Rafael. According to BSEE, by Sunday, nearly 483,000 barrels of oil and 310 million cubic feet of natural gas remained offline, accounting for over 25% of oil and 16% of natural gas output. Additionally, 37 out of 371 manned platforms—about 10%—were still evacuated, and two drilling rigs were displaced. Total production losses have reached 2.07 million barrels of oil and 1.12 billion cubic feet of natural gas. While Rafael has been downgraded to a tropical storm after initially hitting the Gulf as a major hurricane, it is forecast to linger in the central Gulf before moving south and southwest later in the week, according to the US National Hurricane Center.