Coquest

Your Daily Energy Report for November 19, 2024

Posted on 2024-11-19

Crude Oil

Crude Oil futures for December settled up $.23 or .333% at $69.39. Oil prices are slightly up on Tuesday, influenced by a mix of geopolitical developments and diminishing concerns about the Middle East. The ongoing conflict between Russia and Ukraine escalated, with Ukrainian forces using Western-made missiles for the first time, while President Putin expanded Russia’s nuclear strategy. On a more positive note, the International Atomic Energy Agency (IAEA) reported that Iran had agreed to suspend its production of near-weapons-grade uranium, which could help reduce tensions in the region. In Lebanon, there were indications of progress toward a ceasefire between Hezbollah and Israel, although talks are still ongoing. On the supply front, Norway’s Johan Sverdrup oil field resumed two-thirds of its output following a short-term shutdown. Meanwhile, the IEA forecasted a potential oversupply of oil next year, driven by weaker demand from China and possible production increases from OPEC+.
 

Natural Gas

Natural Gas futures for December settled up $.025 or .841% at $2.998. Natural gas prices ended higher on Tuesday as expectations for heating demand increased. Winter forecasts for the December-February period predict average temperatures 2 degrees Fahrenheit lower than last year, which could raise residential and commercial demand by about 2.8 billion cubic feet per day. In Europe, natural gas prices also saw a modest rise amid ongoing geopolitical tensions. Austria's OMV Group confirmed it would no longer receive natural gas from Russia’s Gazprom following an international arbitration decision. This adds to the growing disruption of Russian gas supplies to Europe, where countries are continuing to diversify their energy sources.


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