Coquest

Your Daily Energy Report for December 10, 2024

Posted on 2024-12-10

Crude Oil

Crude Oil futures for January settled up $.22 or .322% at $68.59. Oil prices increased on Tuesday as attention shifted toward rising demand in China, the world's largest oil importer, and potential supply constraints in Europe this winter, rather than the ousting of Syria’s president. The price boost came following reports that China would implement "appropriately loose" monetary policies in 2025 to stimulate economic growth, marking the first policy easing in 14 years, although specific details are scarce. In Syria, rebel forces were working to establish a new government and restore stability after President Bashar al-Assad's removal, with the nation’s banks and oil industry set to resume operations on Tuesday. While Syria is not a major oil producer, its strategic position and strong ties with Russia and Iran are significant. Oil prices may also gain if the U.S. Federal Reserve follows through with a projected quarter-point interest rate cut at its Dec. 17-18 meeting.
 

Natural Gas

Natural Gas futures for January settled down -$.019 or -.597% at $3.163. Natural gas prices rebounded from early declines and finished the session largely unchanged, as the market fluctuated with uncertain winter weather predictions. According to the EIA's latest Short Term Energy Outlook, NOAA's forecasts suggest a colder-than-usual December, which, coupled with expectations of steady production, could result in a storage drawdown of 590 Bcf this month—34% higher than the five-year average. However, a milder-than-average first quarter of 2025 is expected to reduce withdrawals compared to typical levels for that period. Despite these weather-driven factors, the near-term outlook for natural gas remains bearish, as strong supply and weaker LNG demand are dampening the impact of increased weather-related consumption.

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