Coquest

Your Daily Energy Report for November 13, 2024

Posted on 2024-11-13

Crude Oil

Crude Oil futures for December settled up $.31 or .455% at $68.43. Oil prices climbed on Wednesday, recovering slightly from two-week lows, bolstered by temporary supply constraints in the physical market. However, the market sentiment remains pressured by concerns over declining demand. OPEC revised down its 2024 global oil demand growth forecast for the fourth time, now projecting an increase of 1.82 million barrels per day, a decrease from last month's 1.93 million estimate, driven by weaker-than-anticipated data from major consumers like China. China’s announcement of increased fiscal spending failed to meet investor expectations, further compounded by disappointing inflation figures from the world’s largest oil importer. Additionally, there are growing concerns that potential US tariffs under President-elect Trump could exacerbate challenges for the Chinese economy.
 

Natural Gas

Natural Gas futures for December settled up $.076 or 2.614% at $2.983. Natural gas futures gained on Wednesday, as forecasts for colder weather later in November are expected to boost gas withdrawals for heating. Analysts remain uncertain about the pace of storage injections for the week ending November 15, given the balanced supply and demand environment. For the past 14 weeks, injections have been below average, largely due to reduced drilling activity following low prices in March. According to LSEG, natural gas production in the Lower 48 states fell to an average of 100.1 bcfd in November, down from 101.3 bcfd in October and the record 105.3 bcfd set in December 2023. With colder temperatures approaching, LSEG anticipates gas demand, including exports, will increase from 107.8 bcfd this week to 109.3 bcfd next week.


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