Coquest

Your Daily Energy Report for December 11, 2024

Posted on 2024-12-11

Crude Oil

Crude Oil futures for January settled up $1.70 or 2.478% at $70.29. Oil prices rose on Wednesday, as the European Union approved a new sanctions package targeting Russian oil exports, intensifying concerns about supply. The EU's 15th round of sanctions aims to increase pressure on Russia over its actions in Ukraine. However, the gains were partly offset by a report from the US EIA showing higher-than-expected increases in gasoline and distillate inventories, suggesting weak domestic fuel demand. Adding to the uncertainty, OPEC reduced its global oil demand growth projections for 2024 and 2025 for the fifth month in a row, citing sluggish demand in China and rising oil supply from non-OPEC+ countries. Earlier, OPEC+ had postponed plans to increase output, reflecting cautious market conditions. Nevertheless, market sentiment remains positive regarding a potential recovery in Chinese oil demand, boosted by Beijing's plans to implement a more relaxed monetary policy in 2025.

Natural Gas

Natural Gas futures for January settled up $.215 or 6.797% at $3.378. Natural gas prices surged today, reaching their highest level in over a week, primarily driven by predictions of colder weather and increased heating demand. Additionally, natural gas shipments to LNG export facilities have risen, averaging 14 billion cubic feet per day in December, compared to 13.6 billion cubic feet per day in November. Although warmer-than-usual temperatures are expected until December 26, revised higher gas demand projections have helped support prices. On the supply side, production has grown to 102.8 bcfd, up from 101.5 bcfd in November. Analysts anticipate further production increases in 2025, fueled by robust export demand and rebounding prices.

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