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The Energy Report: Reducing Tension

Published 11/15/2024, 10:54 AM
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Crude Oil WTI Futures prices are weaker this morning in part because the Fed Chairman said, “The economy is not sending any signals that we need to be in a hurry to lower rates.” But also, on the perception of a reduction of geopolitical risk regarding Iran. Not only is Iran now signaling that it will not retaliate against Israel for its recent attack they are also suggesting that it wants to reach out to the Trump administration for talks and oh, yes won’t try to kill him.

 

The Wall Street Journal in an exclusive reported that, ‘Iran offered written assurances to the Biden Oil star administration last month that it wasn’t seeking to kill Donald Trump”. The Journal says that, “the Iranian message, delivered on Oct. 14 and not previously reported, came in response to a private written American warning sent to Tehran in September. U.S. officials said it reflected the administration’s public message that it considered the threats against Trump a top-tier national security issue and that any attempt on and that any attempt on his life would be treated as an act of war.” Oil and OPEC star Amena Bakr reported “It’s clear that there is a degree of appetite to defuse tension in the Middle East.

This week Elon Musk reportedly met with Iran’s UN ambassador to discuss how tension could be defused between Tehran and Washington.” In fact, the New York Times (NYSE:NYT) did report the meeting was a discussion of how to defuse tensions between Iran and the United States, according to two Iranian officials who spoke with the New York Times. One of the Iranian officials said that the Tesla (NASDAQ:TSLA) executive requested the meeting and that the ambassador picked the site.

 

On top of that concerns about China demand and the comments by the Fed chairman put a damper on the market despite what was a very bullish weekly report. {{1013456|Gasoline} inventories fell to a two-year low while demand surged. According to the EIA gasoline demand surged 9.383 million barrels a day from the week before, last week they showed that demand plummeted, and the week before that they showed demand surged. Drivers make up their minds. The four-week moving average for total product demand was 20.8 million barrels a day, up by 1.8% from the same period last year. Gasoline demand averaged 9.1 million barrels a day, up by 0.6% from the same period last year. Distillate fuel products supplied averaged 3.9 million barrels a day over the past four weeks, down by 4.0% from the same period last year.

 

The natural gas rally was slapped back after a bearish Energy Information Administration weekly injection report. Working gas in storage was 3,974 Bcf as of Friday, November 8, 2024, according to EIA estimates. This represents a net increase of 42 Bcf from the previous week. Stocks were 158 Bcf higher than last year at this time and 228 Bcf above the five-year average of 3,746 Bcf. At 3,974 Bcf, the total working gas is above the five-year historical range.

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