Coquest

Your Daily Energy Report for December 26, 2024

Posted on 2024-12-26

Crude Oil

Crude Oil futures for February settled down -$.48 or -.685% at $69.62. Oil prices held mostly steady on Thursday, supported by economic measures in China and a U.S. industry report indicating a reduction in crude inventories. In China, authorities are granted more leeway in utilizing government bond funds to boost growth, alongside a stable interest rate environment and a commitment to "moderately loose" monetary policies. Meanwhile, U.S. data from the American Petroleum Institute pointed to a 3.2 million barrel decline in crude inventories, marking a fifth consecutive decrease if confirmed by official figures. Historically, U.S. crude stockpiles tend to dip in December before rebounding in the early months of the year. WTI crude is set to close the year with a slight 2% decline, with prices remaining relatively steady since mid-October. Looking ahead to 2025, traders are evaluating factors such as China's economic policies, Donald Trump's leadership, and OPEC's adjustment of production levels.
 

Natural Gas

Natural Gas futures for January settled down -$.231 or -5.854% at $3.715. Natural gas prices experienced a decline in a volatile session as the January contract expiration approaches on Friday, coinciding with the release of the weekly storage report. A larger-than-anticipated drop in storage could result in inventories falling below the levels from the previous year for the first time since January 2023. The uncertainty was compounded by differing forecasts between U.S. and European weather models, with the European outlook predicting a warmer start to the year. Meanwhile, natural gas production in the Lower 48 states averaged 103.1 bcfd in December, while LNG exports are on track to hit a record 14.8 bcfd, fueled by strong global demand. The upcoming storage report is expected to show a decline in inventories, estimating a 74 to 115 billion cubic feet draw.

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