Coquest

Your Daily Energy Report for December 2, 2024

Posted on 2024-12-02

Crude Oil

Crude Oil futures for January settled up $.10 or .147% at $68.10. Oil prices held steady on Monday as investors closely tracked positive economic indicators from China and awaited the upcoming OPEC+ meeting. China's factory output grew for the second consecutive month in November, expanding at its fastest rate in five months, indicating a recovery in the world's largest oil importer following recent stimulus measures. Meanwhile, Saudi Arabia is expected to lower crude prices for Asian customers in January, reaching their lowest point in four years. Attention is also on the postponed OPEC+ meeting, now scheduled for later this week, where the group is widely anticipated to delay a planned production increase for the third time. Additionally, ongoing geopolitical tensions in the Middle East continue to add a risk premium to oil prices. Despite a ceasefire, Israel has resumed airstrikes on Lebanon, while Iran has pledged support to Syria’s government following the capture of Aleppo by rebel forces.
 

Natural Gas

Natural Gas futures for January settled down -$.155 or -4.602% at $3.213. Natural gas prices fell on Monday, hitting their lowest level in over a week, after a 20% rise in November. The decline comes as weather forecasts predict warmer conditions for mid-December, following a brief cold snap that had driven prices higher. Expectations for lower heating demand have reduced the pressure on utilities to deplete storage levels, despite a recent uptick in consumption due to colder-than-usual weather. US gas production remained strong at 101.5 billion cubic feet per day in November, although it was lower than last year's peak of 105.3 bcfd. Analysts point out that while demand is projected to increase in 2025with higher LNG exports, producers are sticking to cautious output levels to avoid the oversupply issues that plagued the market in previous years.


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