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Oil prices head for 10% weekly jump as Norwegian supply faces drop By Reuters

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© Reuters. FILE PHOTO: Equinor’s oil platform in the Johan Sverdrup oilfield in the North Sea

By Aaron Sheldrick

TOKYO (Reuters) – Oil prices eased on Friday, slipping at the end of a week of big gains made on the risk that supplies from Norway could be slashed by up to 25% due to a strike by oilworkers.

Brent () was down by 14 cents at $43.20 a barrel by 0740 GMT, having gained more than 3% on Thursday. U.S. West Texas Intermediate (WTI) crude () dropped 13 cents to $41.06 after also gaining more than 3% on Thursday.

Both contracts are on track for gains of around 10% this week – the first rise in three weeks – as prices rallied in response to Norwegian oil workers taking strike action.

Norwegian oil company and labour officials said they will meet with a state-appointed mediator on Friday in an attempt both sides hope will bring an end to a strike.

Elsewhere, market watchers are also bracing for the impact on U.S. production of Hurricane Delta, forecast to strike the Gulf Coast within hours. Nearly 1.5 million barrels of daily output has been halted so far.

“Non-OPEC production is going to take a big hit over the next couple of weeks and this will continue to drive the rebalancing of the oil market,” said Edward Moya, senior market analyst at OANDA.

The Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), Mohammad Barkindo, said on Thursday the worst was over for the oil market, following a price and demand collapse this year due to the coronavirus pandemic.

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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Commodities

Oil selloff pauses, but outlook shaky on surging coronavirus cases, supply woes By Reuters

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TOKYO (Reuters) – Oil prices regained a semblance of stability on Tuesday after suffering sharp losses over the previous session and last week, as a resurgence of coronavirus cases globally hit prospects for crude demand while increasing supply also hurt sentiment.

The gloomy backdrop is set to keep prices under pressure over the coming day.

In early Asia, Brent crude () was up 12 cents, or 0.3%, at $40.58 a barrel by 0039 GMT, having dropped more than 3% overnight. U.S. oil () was up 13 cents, or 03%, at $38.69 a barrel, after also declining more than 3% on Monday.

The lack of progress in striking an agreement for a U.S. coronavirus relief package added to the general market gloom, although U.S. House of Representatives Speaker Nancy Pelosi said on Monday she was hopeful a deal with the White House can be reached before the Nov. 3 elections.

A wave of coronavirus infections sweeping across the United States, Russia, France and many other countries has undermined the global economic outlook, with record numbers of new cases possibly forcing some countries to impose fresh restrictions as winter looms.[MKTS/GLOB]

“The market is under pressure from a toxic brew of no stimulus, rapidly increasing coronavirus cases, and the surprise increase of oil production in Libya,” Bob Yawger, director of energy futures at Mizuho Securities.

Prices got some support from the potential drop in U.S. production as oil companies began shutting offshore rigs with the approach of a hurricane in the Gulf of Mexico.

The worst is over for the crude market, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman also said on Monday.

But that contradicted an earlier remark from OPEC’s secretary general, who said any oil market recovery may take longer than hoped as coronavirus infections rise around the world.

Libyan production is expected to reach 1 million barrels per day (bpd) in the coming weeks, the country’s national oil company said on Friday, a quicker return than many analysts had predicted.

That is likely to complicate efforts by the Organization of the Petroleum Exporting Countries to restrict output to deal with weak demand.

OPEC+, the producer group and allies including Russia, is planning to increase production by 2 million bpd from the beginning of 2021 after record output cuts earlier this year.

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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U.S. EPA considering E15 labeling changes at gas pumps: sources By Reuters

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© Reuters. A sign advertising E15, a gasoline with 15 percent of ethanol, is seen at a gas station in Clive

By Stephanie Kelly

NEW YORK (Reuters) – The U.S. Environmental Protection Agency is considering changes to labels for gasoline containing higher blends of ethanol, or E15, in an effort to appease the biofuel industry’s concerns that current labels discourage use of the fuel, according to four sources familiar with the matter.

Expanding the market for E15 has long been a policy goal for farmers and producers of ethanol, a corn-based product, but concerns that some older vehicles don’t run well on the product have been a headwind. Current federal E15 labels warn of possible engine damage.

The Trump administration, meanwhile, has been trying to shore up support in the Farm Belt ahead of the election through favorable announcements for biofuel advocates.

An announcement for a proposal on the labeling changes could come soon, two of the sources said. None of the sources could say exactly how the administration might alter the labeling.

EPA and the White House did not immediately comment.

President Donald Trump in mid-September said in a tweet he would allow states to permit fuel retailers to use their current pumps to sell E15.

Under U.S. law, refiners must blend billions of gallons of biofuels into their fuel pool, or buy credits from those that do. Refiners that prove the requirements harm them financially can get waivers from the obligations.

So-called small refinery exemptions, or SREs, have been a lightning rod of controversy between the Corn and Oil lobbies. Biofuel advocates say the exemptions hurt demand for their product, while the oil industry refutes that and says the waivers helps small refiners stay afloat.

The Trump administration in September sided with farmers in the ongoing debate when it rejected scores of requests from refiners for waivers that would have retroactively spared them from their obligation.

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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Gold Rock-Solid Just Above $1,900 as Dollar Holds, Dow Plunges By Investing.com

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© Reuters.

By Barani Krishnan

Investing.com — A meltdown in stocks a week before the U.S. election and amid alarming new Covid-19 cases sent investors scurrying to safe havens on Monday, solidifying gold’s hold at just above $1,900 an ounce.

While the gain — just $5 on the day for gold futures — was nothing to shout about, it was remarkable for one reason: it came despite a rally in the dollar, which typically would have sent the yellow metal the other way.

It was the second time over the past two weeks that the pair moved the same way, the last being on Oct. 16, when both were down about 0.2% on the day. While it’s too early to suggest that the inverse correlation trade between the dollar and gold is over, the breakdown was certainly something to muse over

“Gold prices are hanging in there despite a strong dollar as investors flee to safe-havens over anxiety over the coronavirus crisis (and) growing expectations for a ‘blue wave’,” said Ed Moya at OANDA in New York, referring to the win expected for “blue” or Democratic party candidate Joe Biden versus red or Republican party president Donald Trump.

settled at $1,905.70, up 50 cents, or 0.03%, as the  plunged almost 3%.

, which reflects real-time trades in bullion, was up $1.99, or 0.1%, at $1,903.55 by 3:00 PM ET (19:00 GMT).

The , which pits the greenback against six major currencies, was up 0.3% at 93.04.

Back in March, when risk aversion for the year was at its heights right after the global outbreak of the coronavirus, gold and the dollar surged at the same time.

The dollar then sank and gold continued its climb almost relentlessly, gaining more than $500 or 30% to hit record highs of almost $2,090 on Comex in early August.

At that point, gold tumbled as investors turned back to the dollar, which became the haven of choice due to its standing as a reserve currency. Gold hit 11-week lows of around $1,851 by late September before digging its heels into the low $1,900 support last week.

“From what we know, people are being drawn to gold now for different reasons now,” said Phillip Streible, chief market strategist at Blueline Futures in Chicago.

“The possibility of additional stimulus is certainly one; we all know another relief plan is happening, it’s just a matter of when. Another is that people are still reliving the after the election in 2016 when the Dow swung up 1,500 points overnight. So there’s this theory that gold could continue to dive with all the uncertainty we have over the present election before snapping back. Gold could benefit over this week and it has had low volatility anyway.”

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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