Brent oil futures for the front month on the ICE market began the last week of October with price declines. On Tuesday, October 29, the futures hit their lowest weekly settlement price at $71.12 per barrel, marking the lowest level since September 12. However, prices began to recover during the last two trading sessions of the month. By Thursday, October 31, Brent oil futures reached their highest weekly settlement at $73.16 per barrel. On Friday, November 1, the price slightly declined to $73.10 per barrel, which was 3.9% lower than the previous Friday’s settlement, AleaSoft reports.
The early-week decline in oil prices was driven by concerns about global oil demand. However, the market received support from a combination of factors: a decline in U.S. oil reserves, the U.S. government’s announcement to replenish its strategic oil reserves, and expectations that OPEC+ would delay planned production increases. On Sunday, November 3, OPEC+ confirmed that it would postpone its scheduled production hike in December by one month, which is expected to provide further support for oil prices in the early days of November.
Meanwhile, TTF gas futures for the front month on the ICE market saw prices consistently above €40/MWh for most of the week. On Tuesday, October 29, the futures reached their highest weekly settlement price at €42.87/MWh. However, from October 30 onward, prices declined, and by Friday, November 1, TTF futures settled at their lowest weekly price of €39.18/MWh. This was a 10% drop from the previous Friday and marked the lowest price since October 10. High European gas reserves and abundant supply were key factors contributing to the price decline during the week.
Regarding CO2 emission allowance futures on the EEX market for the December 2024 reference contract, the price peaked at €67.28 per tonne on Tuesday, October 29, the highest settlement since September 4. However, the remainder of the week saw a downward trend, with the price falling to €63.87 per tonne on Friday, November 1, marking a 4.6% drop compared to the previous Friday. Despite this decline, the average price for the last week of October was 1.6% higher than the week before.
In summary, the last week of October saw price volatility across multiple energy markets, with oil prices recovering after an early-week dip, gas prices falling amid abundant supply, and CO2 emission allowance prices experiencing a slight decline after reaching a peak mid-week. These price movements were influenced by a combination of market expectations, geopolitical factors, and supply-demand dynamics across the energy sector, AleaSoft reports.
