Coquest

Your Daily Energy Report for November 18, 2024

Posted on 2024-11-18

Crude Oil

Crude Oil futures for December settled up $2.14 or 3.193% at $69.16. Oil prices jumped on Monday, driven by growing concerns over tightening supply. Production at Norway's Johan Sverdrup oilfield, the largest in Western Europe, was halted due to a power outage at an onshore facility. The rally was further fueled by rising tensions in the Russia-Ukraine conflict, particularly after the Biden administration authorized the use of U.S. weapons by Ukraine to strike deeper into Russian territory. This came after oil prices had fallen by more than 3% the previous week, weighed down by disappointing economic data from China and a forecast from the International Energy Agency suggesting a potential global oil surplus by 2025. In October, China's refinery output dropped by 4.6%, and industrial production showed signs of slowing, heightening market concerns. Investors also remained cautious due to uncertainty around the timing of potential rate cuts by the Federal Reserve, contributing to volatility in global markets.
 

Natural Gas

Natural Gas futures for December settled up $.15 or 5.313% at $2.973. Natural gas prices climbed on Monday, supported by expectations of higher demand as colder weather sets in and a slight decline in production. As temperatures fall, natural gas consumption typically increases, pushing prices upward. Moreover, U.S. LNG export activity has been on the rise, with daily gas flows to export terminals reaching a 10-month high last Friday. For November, average natural gas exports to the country’s seven main LNG facilities have risen to 13.3 bcfd, up from 13.1 bcfd in October, signaling stronger overseas demand for U.S. gas. Additionally, recent data from the EIA showed that U.S. utilities injected 42 billion cubic feet of gas into storage during the week ending November 8, leaving inventory levels 6.1% higher than the seasonal average.


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