Coquest

Your Daily Energy Report for December 9, 2024

Posted on 2024-12-09

Crude Oil

Crude Oil futures for January settled up $1.17 or 1.741% at $68.37. Oil prices rose on Monday, fueled by optimism surrounding China's shift to a more relaxed monetary policy and ongoing geopolitical tensions in the Middle East. As the world's top oil importer, China indicated plans for a "moderately loose" monetary policy in 2025, marking its first major shift in over ten years to stimulate economic growth. This decision boosted market sentiment and supported higher oil prices. Geopolitical uncertainties also played a role, with reports about Syrian President Bashar al-Assad’s removal heightening concerns over regional instability. At the same time, Saudi Aramco reduced its January 2025 prices for Asian customers to the lowest level since 2021, reflecting weak demand in the area. Investors are keenly awaiting this week's US inflation data for insights into the Federal Reserve’s interest rate decisions.
 

Natural Gas

Natural Gas futures for January settled up $.106 or 3.446% at $3.182. Natural gas prices surged on Monday, recovering from a large decline the previous week, as demand is now expected to stay stronger than initially forecasted. While predictions of warmer-than-usual weather point to reduced heating demand, this effect could be counterbalanced by an increase in feedgas volumes to LNG export facilities. Gas deliveries to the country's seven major LNG plants averaged 14.2 bcfd in early December, up from 13.6 bcfd in November and approaching record levels. On the production side, output in the Lower 48 states rose to 102.3 bcfd in December, from 101.5 bcfd in November. Experts anticipate further increases in production in 2025, driven by strong export demand and recovering prices.

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