Coquest

Your Daily Energy Report for December 5, 2024

Posted on 2024-12-05

Crude Oil

Crude Oil futures for January settled down -$.24 or -.35% at $68.30. Oil prices dipped on Thursday following OPEC+’s decision to keep oil production levels unchanged for the first quarter of 2025. The group intends to gradually boost output starting in Q2 and continuing through September 2026. This move meets market expectations as OPEC+ works to balance declining global demand with increasing production from non-member countries. Currently, OPEC+ is holding back 5.86 million barrels per day, roughly 5.7% of global demand, to help maintain price stability. In the U.S., data showed a mixed outlook: crude inventories dropped by more than 5 million barrels, marking the largest weekly decline since August, while production hit a new record, highlighting strong supply from outside OPEC+. Oil markets will now shift focus to the actions of U.S. President-elect Donald Trump, who could impose new sanctions on Iran, tariffs on China and has pledged an end to the war in Ukraine.
 

Natural Gas

Natural Gas futures for January settled up $.036 or 1.183% at $3.079. Natural gas prices rebounded from a two-week low on Thursday as higher feedgas volumes were directed to LNG export terminals. Gas deliveries to the country’s seven major LNG plants averaged 14.2 bcfd in early December, up from 13.6 bcfd in November, approaching record levels. Weather forecasts indicate a transition from colder-than-usual conditions until December 7 to milder temperatures afterward, which could impact heating demand. On the supply side, gas production in the Lower 48 states rose to 102.3 bcfd in December, up from 101.5 bcfd in November, though still shy of the record 105.3 bcfd set last December. Analysts expect production to grow in 2025 as demand for LNG exports increases and prices recover from the declines of 2024.

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