Coquest

Your Daily Energy Report for November 14, 2024

Posted on 2024-11-14

Crude Oil

Crude Oil futures for December settled up $.27 or .395% at $68.70. Oil prices held mostly steady on Thursday, amid pressure from a warning by the IEA. The IEA cautioned that global oil markets could face a supply surplus of more than 1 million barrels per day by 2025, particularly if OPEC+ follows through with plans to boost production. This surplus scenario is compounded by weakening oil demand from China, which has been a major growth driver for two decades. China's oil consumption has declined for six months in a row and is expected to expand at just 10% of last year's growth rate in 2024. On top of that, a stronger U.S. dollar, now at a two-year high, is making oil more expensive for international buyers. Additionally, increased oil output from the U.S., Brazil, and Canada adds to the growing concerns of oversupply. Despite ongoing geopolitical risks, including tensions in the Middle East, oil prices have fallen 11% since early October.
 

Natural Gas

Natural Gas futures for December settled down -$.198 or -6.638% at $2.785. Natural gas prices fell on Thursday following the release of the latest storage data from the EIA. The report revealed that utilities added 42 bcf of gas to storage last week, slightly below the 43 bcf expected. Gas inventories are now 6.1% above the typical seasonal level, marking the fourth consecutive week of above-average storage builds, a trend last seen in October 2022. Although heating demand is projected to rise later in November as colder weather arrives, forecasts suggest that temperatures will remain warmer than usual until November 20, with more average conditions expected between November 21-27. Production has also decreased, with the average output in the Lower 48 states dropping to 100.0 bcfd in November, down from 101.3 bcfd in October.


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