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Oil Falls Back Toward $40 as Supply Constraints Begin to Ease By Bloomberg

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© Reuters. Oil Falls Back Toward $40 as Supply Constraints Begin to Ease

(Bloomberg) — Oil slipped a second day as operations in the Gulf of Mexico began to resume following Hurricane Delta, Libya stepped up plans to restart production and oil workers in Norway called off a strike.

Futures in New York fell as much as 0.9%, after declining 1.4% on Friday. U.S. Gulf operators are beginning to restart production after the storm made landfall on Friday. Delta’s approach had seen about 92% of oil production and 62% of gas output shuttered.

Libya took a major step toward reviving its battered oil industry by reopening its biggest field. The Sharara field will initially pump 40,000 barrels of crude a day, before reaching its capacity of almost 300,000 barrels in 10 days, a person with knowledge of the situation said.

The resumption of supply from Libya is an added headache for OPEC and its allies as they mull whether to proceed with plans to further taper production curbs in January. With coronavirus cases accelerating in many countries, the cartel faces a difficult decision at its next policy meeting on Nov. 30-Dec. 1 to stay the course or delay the increase in production.

Crude rallied last week as traders factored in the production hit from Hurricane Delta and as the U.S. inched closer to more fiscal stimulus. However, prices retreated on Friday after Norway’s oil workers agreed a settlement that will restore production at six fields shut down by the dispute and prevent an escalation to another six. It also averted a shutdown of Norway’s largest oil field, the 460,000 barrel-a-day Johan Sverdrup facility.

Iraq, OPEC’s second-biggest oil producer, expects crude prices to remain at around $41 to $42 a barrel this year before rising to $45 in the first quarter of 2021, the state-run Al-Sabah newspaper reported, citing an interview with Oil Minister Ihsan Abdul Jabbar. The minister reiterated Iraq’s compliance with the OPEC+ pact to curb output.

Drilling rigs targeting in the U.S. rose by 4 to 193 last week, according to Baker Hughes, an increase of 14 in the last three weeks. Activity is starting to pick up despite a warning that demand might not recover to pre-pandemic levels until 2023. A Federal Reserve Bank of Kansas City survey of energy executives found a glum outlook not only for demand but for oilfield jobs, wages and access to credit.

©2020 Bloomberg L.P.

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Oil Down 3% on Week on U.S. Rig Climb, Libya Supply Prospects By Investing.com

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© Reuters.

By Barani Krishnan

Investing.com – U.S. crude draw numbers aren’t helping oil prices as investors zero in on the climbing rig count and prospects of Libyan supplies returning in a big way.

Both West Texas Intermediate, the key indicator for crude prices in the United States, and Brent, the global benchmark for oil, fell about 3% on the week after the rose to 211 from last week’s level of 205. 

Oil rigs, an indicator of future production, have steadily climbed since the week ended Sept 4, when they stood at 180.

Adding to the weight on the market were estimates that Libyan oil output, mostly offline since January, had risen to 500,000 barrels per day and will likely grow further by end-October.

“Low sales and bad margins tells me that crude buying could disappear in the U.S. until Q1,” said Scott Shelton, energy futures broker at ICAP (LON:) in Durham, North Carolina.

New York-traded settled at $39.85 per barrel, down 79 cents, or 1.9%. For the week, WTI fell 2.5%.

London-traded settled at $41.77, down $1.16, or 2.7%.

fell 1 million barrels for the week ended Oct. 18, falling largely within the expected draw of 1.02 million barrels, the U.S. Energy Information announced on Wednesday.

Crude stored at , Oklahoma, delivery point for contracted barrels of WTI also rose within expectations, climbing by 975,000 barrels versus the forecast 1.1 million barrels.

But jumped by 1.9 millions barrels — an 180-degree build over analysts’ estimates.

The EIA did deliver a positive number on , which drew down by 3.8 million barrels, or double expectations. This was ostensibly due to the strong delivery-and-trucking activity as many people remained cloistered in their homes ordering everything from clothing to groceries. 

But the agency also surprised traders by estimating that U.S. crude production fell by 9.9 million barrels per day last week, down 600,000 bpd from the previous week. 

The drop in production jarred with the rise in oil rigs logged since mid-September, leading some to think the impact on output from this month’s Hurricane Delta had been overestimated. Delta, which struck Louisiana as a Category 2 storm, shuttered nearly 92% of all oil production in the U.S. Gulf of Mexico.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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China’s purchases of U.S. farm goods at 71% of target under trade deal: U.S. By Reuters

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2/2
© Reuters. Senate Finance Committee hearing on U.S. trade on Capitol Hill in Washington

2/2

WASHINGTON (Reuters) – China has substantially increased purchases of U.S. farm goods and implemented 50 of 57 technical commitments aimed at lowering structural barriers to U.S. imports since the two nations signed a trade deal in January, the U.S. government said on Friday.

In a joint statement, the U.S. Trade Representative’s (USTR) office and the U.S. Department of Agriculture (USDA) said China had bought over $23 billion in U.S. agricultural goods to date, or about 71% of the target set under the so-called Phase 1 deal.

“Since the Agreement entered into force eight months ago, we have seen remarkable improvements in our agricultural trade relationship with China, which will benefit our farmers and ranchers for years to come,” U.S. Trade Representative Robert Lighthizer said in a statement.

The deal defused a bitter trade war between the world’s two largest economies, but disputes over human rights, the COVID-19 crisis and technology have strained ties between Washington and Beijing, raising doubts about the prospects for deepening the agreement in a second phase.

Agriculture is one of the four areas where China pledged to increase its purchases of U.S. goods and services. Many experts question whether China will meet its overall targets this year given lockdowns imposed earlier this year to contain the virus.

The report showed outstanding sales of U.S. corn to China were at an all-time high of 8.7 million tons, while U.S. soybeans sales for marketing year 2021 to China were at double the levels seen in 2017.

U.S. exports of sorghum to China from January to August 2020 totaled $617 million, up from $561 million for the same period in 2017, it said.

U.S. pork exports to China hit an all-time record in just the first five months of 2020, and U.S. beef and beef products exports to China through August 2020 are already more than triple the total for 2017, it said.

In addition to these products, USDA expects 2020 sales to China to hit record or near-record levels for other U.S. agricultural products including pet food, alfalfa hay, pecans, peanuts, and prepared foods.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Democrats in U.S. drilling states push back against Biden oil remarks By Reuters

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© Reuters. Final 2020 U.S. presidential campaign debate in Nashville

By Nichola Groom

(Reuters) – Democratic candidates in oil drilling states were quick to distance themselves on Friday from comments by their party’s presidential candidate, Joe Biden, that indicated he would move the United States away from a reliance on oil.

From Texas to Montana, Democrats locked in tight congressional races in Nov. 3’s general election took to Twitter to affirm their support for the fossil fuel industries and workers in their states.

“I’ll always stand up to my party when it’s out of touch with our Montana way of life,” Governor Steve Bullock, who is running for U.S. Senate, tweeted on Friday.

President Donald Trump, who trails Biden in national opinion polls, accused his rival in their final presidential debate on Thursday of planning to destroy the oil industry, leading the former vice president to respond that he did believe the country should eventually replace oil with solar, wind and other forms of non-polluting power.

“I would transition from the oil industry, yes,” Biden said.

“He is going to destroy the oil industry,” Trump said. “Will you remember that Texas? Will you remember that Pennsylvania, Oklahoma, Ohio?”

After the debate, Biden told reporters he was referring to a plan to stop subsidizing fossil fuels: “… they’re not going to lose their jobs. Besides, a lot more jobs are going to be created in other alternatives.”

Trump’s campaign seized on Biden’s remarks, promoting a new advertisement on Friday that said thousands of drilling jobs were at stake in the battleground state of Pennsylvania.

“I disagree with VP Biden’s statement tonight,” Democratic Representative Xochitl Torres Small, whose district includes portions of New Mexico’s oil-rich Permian basin, tweeted after the debate, saying the country should not “demonize a single industry.”

Polls show Torres Small in a tight race against Republican opponent Yvette Herrell, who she narrowly unseated in 2018.

Torres Small said she was willing to break with her party on the issue, a sentiment echoed by Bullock, who briefly sought the Democratic presidential nomination himself, and U.S. Representative Kendra Horn of Oklahoma.

U.S. Representative Lizzie Fletcher, a Democrat running for re-election in Houston, the capital of the U.S. oil industry, said in a statement that Biden’s comments “fail to address the complexity of our energy needs and plan for our future.”

Biden says his $2 trillion plan to combat climate change through investment in clean energy will create millions of jobs, a stark contrast to Trump administration policies that promote fossil fuel development and play down the threat of climate change.

Nationally, Biden’s plan enjoys the support of two-thirds of voters, according to a New York Times/Siena College poll this month. But in states where the oil industry is a major employer, many voters are skeptical of a move away from fossil fuels.

Democratic vice presidential nominee Kamala Harris said Trump was blowing her running mate’s comments out of proportion.

“The president likes to put everything out of context,” the California senator said at a campaign stop in Atlanta.





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