Coquest

Your Daily Energy Report for December 12, 2024

Posted on 2024-12-12

Crude Oil

Crude Oil futures for January settled down -$.27 or -.384% at $70.02. Oil prices dropped on Thursday, undoing earlier gains after the International Energy Agency (IEA) cautioned about a possible supply surplus next year. This forecast differs from the US Energy Information Administration's prediction of a balanced market. Additionally, OPEC revised down its 2025 oil demand growth projection for the fifth consecutive month, pointing to weak demand in China and rising oil production outside of OPEC+. However, expectations for increased demand from China persist, following Beijing's announcement of plans to ease monetary policies in 2025. Earlier in the day, prices had climbed as the EU imposed more sanctions on Russia due to its ongoing conflict in Ukraine, and US officials signaled potential tougher actions on Russian and Iranian oil exports. Treasury Secretary Janet Yellen noted that lower oil prices could open avenues for sanctions to further diminish Russia's oil revenue.
 

Natural Gas

Natural Gas futures for January settled up $.077 or 2.279% at $3.455. Natural gas prices climbed today, reaching their highest level in over two weeks, driven by a larger-than-expected storage draw reported by the EIA. US utilities withdrew 190 billion cubic feet (bcf) of gas from storage for the week ending December 6, well above the 170 bcf forecast. This withdrawal significantly exceeded both last year’s 72 bcf and the five-year average of 71 bcf for the same period. Despite the draw, meteorologists predict warmer-than-normal weather across much of the US through December 26, which could temper heating demand. On the export side, LNG shipments remain robust, with gas flows to US LNG export facilities averaging 14.1 bcf/day so far in December, up from 13.6 bcf/day in November. Domestic production also increased, averaging 102.8 bcf/day this month.

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