Coquest

Your Daily Energy Report for December 20, 2024

Posted on 2024-12-20

Crude Oil

Crude Oil futures for February settled up $.08 or .115% at $69.46. Oil prices increased on Friday, recovering some of the earlier losses, though still finishing the week down by 3%. The rebound followed a retreat in the US dollar from its two-year peak, alongside data showing signs of easing inflation just two days after the Federal Reserve's rate cut. China's energy outlook added to market concerns, as Sinopec forecast that crude imports could reach their peak by 2025, with oil demand potentially peaking by 2027. These projections contributed to the overall decline in global oil prices. OPEC+ revised its 2024 demand growth estimate downwards for the fifth time in a row, emphasizing the importance of maintaining supply discipline. Geopolitical tensions also mounted, as the G7 considered tightening restrictions on Russian oil price caps. Furthermore, President-elect Trump suggested the possibility of imposing tariffs on the EU if it fails to address trade imbalances, particularly regarding U.S. oil and gas.
 

Natural Gas

Natural Gas futures for January settled up $.164 or 4.576% at $3.748. Natural gas prices climbed on Friday, marking the highest level in over a year, as expectations for stronger global LNG demand fueled optimism about increased domestic consumption. Updated forecasts predicting a cold snap in the US in mid-January prompted the industry to boost its demand projections by 18 billion cubic feet heading into the weekend. This came alongside data from the EIA revealing a decline in gas storage levels of over 100 billion cubic feet for the second consecutive week, signaling an earlier-than-usual start to the withdrawal season. The growing uncertainty over Europe’s continued access to Russian gas via Ukraine led investors to increase their LNG positions, as EU countries sought alternative gas supplies, resulting in higher demand for US LNG.

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