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2020-11-05 12:55:00

OIL PRICE: ABOVE $40 ANEW

OIL PRICE: ABOVE $40 ANEW

REUTERS - NOVEMBER 5, 2020 Oil dropped on Thursday as Democrat Joe Biden edged closer to the White House in a nail-biting U.S. presidential election, but the Republicans look likely to retain Senate control, decreasing the chances of any huge COVID-19 relief package.

U.S. West Texas Intermediate (WTI) crude futures were down 60 cents, or 1.53%, to $38.55 a barrel at 0756 GMT, while Brent crude futures fell 64 cents, or 1.55%, to $40.59 a barrel. Both contracts had jumped around 4% on Wednesday.

Biden predicted victory over President Donald Trump after winning two critical U.S. states, while the Republican incumbent alleged fraud, filed lawsuits and demanded recounts in a race yet to be decided.

A drawn-out court battle over the results could cause additional uncertainty in the market, spawning further sell-offs within risky asset classes, including oil futures, said Bjornar Tonhaugen, Rystad Energy’s head of oil markets.

“The next few weeks could be quite tumultuous with looming court challenges and recounts,” analysts at RBC Capital Markets wrote in a note.

Current vote counting and trends suggest the Republicans are poised to retain control of the U.S. Senate, while the Democrats will hold a slimmed majority in the House of Representatives. A divided Congress would likely prevent Biden from enacting major priorities like fighting climate change or easing sanctions on oil producer Iran.

“Fortunately for oil markets, it would seem any olive branch to Iran will not be extended anytime soon,” said Stephen Innes, chief market strategist at Axi.

Under a Biden victory, RBC analysts anticipate Iran being able to return around 1 million barrels per day (bpd) of exports back to the market by the second half of 2021. S&P Global Platts analysts do not expect a meaningful return of Iranian oil before 2022 under either Trump or Biden.

At the same time, weakening demand in Europe continued to weigh on sentiment, with average highway use in France, Italy and Spain dropping to its lowest level since late June, ANZ Research said in a note.

“This is likely to put pressure on the OPEC+ alliance to delay its planned rise in output in January,” it said.

Oil prices had surged on Wednesday on growing expectations the Organization of the Petroleum Exporting Countries and its allies, together called OPEC+, would hold off on bringing back 2 million bpd of supply in January, given demand has been sapped by new COVID-19 lockdowns.

“The volatility in oil will remain because of its sensitivity to the U.S. dollar. And the U.S. dollar will remain volatile for at least the next few days as the U.S. election still has to be worked out,” said Commonwealth Bank commodities analyst Vivek Dhar.

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Earlier:

OIL PRICE: ABOVE $40 ANEW
2020, November, 3, 13:25:00
OIL PRICE: ABOVE $40
Brent rose 70 cents, or 1.8% to $39.67 a barrel, WTIwere up 78 cents, or 2.1%, to $37.59 a barrel.
OIL PRICE: ABOVE $40 ANEW
2020, November, 2, 17:25:00
OIL PRICE: ABOVE $37 AGAIN
Brent was down 80 cents, or 2.1%, at $37.14 a barrel, WTI fell 93 cents, or 2.6%, to $34.86.
OIL PRICE: ABOVE $40 ANEW
2020, October, 30, 13:50:00
OIL PRICE: ABOVE $37
Brent slipped for a third day and was down 51 cents, 1.4%, at $37.14 a barrel, WTI declined 48 cents, or 1.3%, to $35.69 a barrel.
OIL PRICE: ABOVE $40 ANEW
2020, October, 29, 17:15:00
OIL PRICE: NOT ABOVE $37
Brent were down $1.96, or 5%, at $37.16, WTI fell $1.94, or 5.2%, to $35.45.
OIL PRICE: ABOVE $40 ANEW
2020, October, 28, 14:15:00
OIL PRICE: NEAR $40
Brent were down $1.20, or 2.9%, at $40 a barrel, WTI was down $1.49, or 3.7%, at $38.08.
OIL PRICE: ABOVE $40 ANEW
2020, October, 27, 14:50:22
OIL PRICE: NEAR $41 ANEW
Brent was up 52 cents, or 1.3%, at $40.98 a barrel, WTI gained 38 cents, or 1%, to $38.94.
OIL PRICE: ABOVE $40 ANEW
2020, October, 26, 14:00:00
U.S. SHALE SURVIVORS
The sector is in full-on merger mode in response to oil prices that have been stuck at around $40 a barrel in recent months after the Covid-19 pandemic hit global demand.
All Publications »
Tags: OIL, PRICE, BRENT, WTI
Chronicle:
OIL PRICE: ABOVE $40 ANEW
2020, November, 27, 11:30:00
SAUDI ARABIA'S CARBON CONCEPTION
The circular carbon economy concept has been endorsed by G20 member states but has yet to be put into practice, and the kingdom has not revealed any timelines or targets associated with the plan.
OIL PRICE: ABOVE $40 ANEW
2020, November, 27, 11:25:00
JAPAN'S NIKKEI UP TO 26 644,71
Nikkei rose 0.41% to close at 26,644.71. The index has gained 15.96% this month, and is on track for its best performance since January 1994. The broader Topix rose 0.47% to hit a 25-month high at 1,786.52.
OIL PRICE: ABOVE $40 ANEW
2020, November, 27, 11:20:00
INDONESIA'S COAL FOR CHINA $1.5 BLN
China Coal Transportation and Distribution has signed a US$1.5bn agreement with the Indonesian Coal Mining Association (APBI) to buy 200 Mt of thermal coal in 2021.
OIL PRICE: ABOVE $40 ANEW
2020, November, 27, 11:15:00
BRITAIN'S NUCLEAR VALUE
The UK Treasury said yesterday it is important to consider large-scale nuclear projects in addition to Hinkley Point C (HPC) if the country is to meet its net-zero by 2050 target.
OIL PRICE: ABOVE $40 ANEW
2020, November, 27, 11:10:00
RUSSIAN HYDROGEN DEVELOPMENT
“The global energy market is changing, humanity needs new, efficient, more environmentally friendly energy sources not as a replacement, but as an alternative to traditional hydrocarbons. And hydrogen will definitely occupy its niche in the energy of the future,” said TPU.
OIL PRICE: ABOVE $40 ANEW
2020, November, 26, 12:20:00
OIL PRICE: NOT BELOW $48 ANEW
Brent were down 1 cent at $48.60 a barrel . WTI was off by 4 cents at $45.67 a barrel.
OIL PRICE: ABOVE $40 ANEW
2020, November, 26, 12:15:00
RUSSIAN GAZPROM'S BENEFIT
"The macroeconomic situation has had a negative impact on the long-term development prospects of the LNG industry," Gazprom said, adding that so far in 2020 only one final investment decision had been made for a new LNG production project.
All Publications »