Coquest

Your Daily Energy Report for December 17, 2024

Posted on 2024-12-17

Crude Oil

Crude Oil futures for January settled down -$.63 or -.891% at $70.08. Oil prices dropped on Tuesday, driven by growing concerns over declining global demand as traders braced for the US Federal Reserve's upcoming policy meeting. Weaker-than-expected economic data from China raised doubts about the country’s growth, amplifying fears of reduced consumption from the world’s largest crude importer. This, along with predictions of oversupply in the coming year, overshadowed ongoing geopolitical tensions in Russia and the Middle East. Furthermore, disappointing manufacturing data from both the US and Eurozone added to concerns about lower fuel demand, further weighing on crude prices. With the Fed's final rate decision of the year on the horizon, traders are anticipating a 25bps rate cut, which could spur economic activity and potentially lift oil demand. Rising non-OPEC+ supply from the U.S. and Brazil may offset OPEC+ cuts, adding bearish pressure on global oil markets.
 

Natural Gas

Natural Gas futures for January settled up $.082 or 2.542% at $3.308. Natural gas prices climbed, overcoming concerns that mild weather in the U.S. could suppress demand. A new report from the Department of Energy, released on Tuesday, warns that allowing unrestricted exports of liquefied natural gas (LNG) would significantly drive up domestic energy prices. This report follows a nearly year-long pause on new LNG export approvals, implemented after Russia's invasion of Ukraine triggered a rush for alternative energy supplies in Europe. According to Natgasweather.com, a cold weather system will move through the Great Lakes and East next weekend, bringing highs in the 20s-30s and lows in the 10s-20s. Overall, demand is expected to remain light through Friday, but it will pick up over the weekend.

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