Your Daily Energy Report for November 12, 2024
Posted on 2024-11-12
Crude Oil
Crude Oil futures for December settled up $.08 or .118% at $68.12. Oil prices saw a modest increase on Tuesday, following a 5% drop over the previous two days. The market reacted to OPEC's decision to revise down its global oil demand forecast for 2024 for the fourth time and to growing concerns about China’s economic outlook. October data from China revealed its slowest consumer price growth in four months, alongside a deeper decline in producer prices, raising fears of deflation and disappointing investors due to the absence of substantial economic stimulus. In the U.S., there is speculation that the country’s policy could shift toward boosting domestic shale production, especially with North Dakota Governor Doug Burgum, being considered for the position of Energy Secretary under former President Trump. Meanwhile, the U.S. dollar remained strong as market expectations of Trump’s policies suggest interest rates may stay elevated for a longer period.
Natural Gas
Natural Gas futures for December settled down -$.013 or -.445% at $2.907. Natural gas prices ended slightly lower after a 10% surge the previous day, as weather forecasts remain somewhat cooler, but not significantly so. Monday’s price jump was driven by updated weather predictions that initially raised expectations for higher demand by adding 10 heating degree days (HDD) to the outlook after the weekend. According to NatGasWeather.com, temperatures are expected to remain around seasonal norms through November and into early December, with the possibility of occasional colder spells. However, unless consistent cold weather develops across forecasts, current price support may not hold, potentially leading to a pullback. A modest increase in U.S. stockpiles is anticipated in this week’s EIA report, which will be released on Thursday.