Coquest

Your Daily Energy Report for November 21, 2024

Posted on 2024-11-21

Crude Oil

Crude Oil futures for January settled up $1.35 or 1.964% at $70.10. Oil prices climbed on Thursday, fueled by growing tensions between Russia and Ukraine. Reports revealed that Russia had launched its first-ever intercontinental ballistic missile toward Ukraine, following Ukraine's use of long-range weapons supplied by the US and UK earlier in the week. Meanwhile, traders are closely watching the upcoming OPEC+ meeting on December 1st, with speculation that the group might hold off on increasing output. However, an uptick in US crude inventories limited further price increases. According to the EIA, US crude stockpiles rose by 0.5 million barrels last week, surpassing the expected 0.4 million-barrel increase. Gasoline inventories also grew by 2.1 million barrels, exceeding the anticipated 1.6 million-barrel rise.
 

Natural Gas

Natural Gas futures for December settled up $.146 or 4.573% at $3.339. Natural gas prices soared on Thursday, building on a 6% increase from the previous day, prices reached their highest level in a year as predictions of colder weather boosted expectations for heating demand and brought forward the anticipated start of the storage withdrawal season. EIA data showed a 3 billion cubic feet drop in gas storage for the week ending November 15th, contrary to the expected 5 billion cubic feet rise, marking the season's first decline. This drop was influenced by lower prices in the prior week, prompting producers to reduce output. Recent weather forecasts indicate cooler-than-usual temperatures across the West Coast and much of the country, excluding the Gulf Coast. Meanwhile, supply concerns in Europe as the year-end approaches led to a rise in LNG feed gas flows, reaching a 10-month high and putting further strain on domestic supply.


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