Coquest

Your Daily Energy Report for December 30, 2024

Posted on 2024-12-30

Crude Oil

Crude Oil futures for February settled up $.39 or .552% at $70.99. Oil prices increased slightly on Monday during light holiday trading, reaching close to a seven-week peak, as market participants focused on economic data from the U.S. and China to assess demand in the largest oil-consuming nations. Anticipation surrounds upcoming factory activity reports from China and a U.S. economic survey for December, amid optimism about stronger Chinese growth in 2025. Meanwhile, colder-than-average weather has driven a surge in natural gas prices, potentially boosting short-term oil demand. However, the market remains cautious due to concerns about a possible supply surplus in 2025 and ongoing geopolitical risks, with attention also turning to the incoming U.S. administration and its potential influence on energy policy.
 

Natural Gas

Natural Gas futures for January settled up $.553 or 16.346% at $3.936. Natural gas prices surged on Monday, reaching its highest levels since December 2022. This surge was fueled by forecasts of a significant cold front expected to impact major population areas by the weekend. After a period of mild weather, below-average temperatures are anticipated across the Lower 48 states through mid-January, potentially driving high demand and triggering freeze-offs. Projections for Jan. 2–12 suggest a frosty trend, which could lead to withdrawals exceeding 200 Bcf. The most recent EIA report recorded a 93 Bcf withdrawal—lower than the five-year average of 127 Bcf but higher than last year’s 87 Bcf—bringing total inventories to 3,529 Bcf, 166 Bcf above the five-year average. Meanwhile, LNG export demand remains strong at over 14.0 Bcf/day, and production dipped slightly to 105.9 Bcf/day.

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