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Oil Up, But Oversupply Fears Remain By Investing.com

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By Adam Claringbull

Investing.com – Oil was up on Tuesday morning in Asia, staging a slight recovery from the previous day’s 2.9% fall. However, oversupply issues continue to dog the market with ever-rising COVID_19 number continuing to slash global demand.

were up 0.19% to $41.80 by 11:38 PM ET (3:38 AM GMT) and rose 0.23% to $39.52.

Recent supply outages that have assisted oil prices are coming to an end, leading to the strong fall in the previous trading session. U.S. Gulf of Mexico rigs are coming back onstream after Hurricane Delta passed through the region late in the previous week.

In Norway, an agreement has been reached between striking oil workers and management, ending a strike that had disrupted 8% of Norway’s output. The country’s 460,000 barrels per day (bpd) Johan Sverdup field was due to have been shut down by strike action next week, the anticipation of which had helped sustain prices.

A further oversupply factor is coming from Libya, where the Sharara field had its force majeure embargo lifted on Oct. 11. The field is expected to reach 300,000 bpd if it returns to pre-embargo levels, nearly doubling the North African Organization of Petroleum Exporting Countries (OPEC) member’s current output.

Commonwealth Bank commodities analyst Vivek Dhar said in a note: “That would effectively add 0.3% of global oil supply in a very short time frame.”

OPEC+, a group formed of OPEC and its allies, is due hold a meeting of its market monitoring panel on Oct. 19. The group is expected to continue with the 7.7 bpd cuts it put in place earlier in the year, though many investors are anticipating these to be both extended and deepened.

Andrew Lebow, senior partner at Commodity Research Group said: “They look at the balances as carefully as anybody else, and they’re looking at what the demand picture is. It’s highly unlikely that they’re going to pursue a tapering strategy. If anything, they might talk about having to reduce production, rather than increase production.”

Investors are looking to crude oil supply data from the American Petroleum Institute, due later on the next day.

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

Gold Up, Boosted By U.S. Jitters and Weak Dollar By Investing.com

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By Gina Lee

Investing.com – Gold was up on Tuesday morning, boosted by a weak dollar and concern over the potential economic impact from the ever-rising number of COVID-19 cases.

There are over 43.4 million COVID-19 cases globally as of Oct. 27, according to Johns Hopkins University data.

were up 0.24% at $1,910.30 by 12:58 AM ET (4:58 AM GMT), staying above the $1,900 mark. The was down on Tuesday morning.

The U.S., Russia and France saw record numbers of daily COVID-19 cases, with restrictive measures re-introduced in some European countries. The worries over the potential economic impact of the measures dampened sentiment and drove investors to the safe-haven yellow metal.

In the U.S., talks over the latest stimulus measures seemed to have come to a halt, with White House economic adviser Larry Kudlow on Monday saying talks have slowed. However, House of Representatives Nancy Pelosi remained optimistic that a consensus with Senate Republicans could be reached on the measures before the presidential election, now only a week away.

On the data side, the U.S. reported fall in September’s new single-family homes sales, after four consecutive months of increases. However, the housing market continues to be supported by low mortgage rates and increased demand for home-office space due to COVID-19. Further data, including third quarter GDP, is due to be released later in the day.

Across the Atlantic, the U.K. and the European Union (EU) are working against the clock to bridge gaps and seal a Brexit trade deal. EU chief negotiator will head to London to resume negotiations.

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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Oil Up, But Oversupply Fears Cap Gains By Investing.com

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© Reuters.

By Adam Claringbull

Investing.com – Oil was up on Tuesday morning in Asia after Monday’s large falls. Surging coronavirus numbers globally are pushing demand expectations down.

rose 0.51% to $41.02 by 12:05 PM ET (4:05 AM GMT) and were up 0.44% to $38.73.

Oil pulled up from its downward trajectory in Asian trade this morning, with a record-breaking 11th hurricane on its way into the Gulf of Mexico. Hurricane Zeta is due to make U.S. landfall on Wednesday, with U.S. rigs and refineries shutting down in preparation for it its arrival.

However, the global surge in COVID-19 cases, especially in Europe and the U.S., has dampened investor enthusiasm for oil, with few signs of an economic recovery any time soon. The U.S. is particularly hard hit, especially in the Sunbelt and Midwest regions.

Lowered demand expectations are not the only factor hampering the market, Libya has returned from its embargo much more rapidly than expected, with the nation now producing close to 1 million barrels per day (bpd), up from less than 100,000 bpd in July.

Further negative sentiment is being raised by the lack of the U.S. government’s ability to decide on and pass a coronavirus stimulus package, with only a very small likelihood of relief measures being passed before the country’s Nov. 3 elections. U.S. House of Representatives Speaker Nancy Pelosi said that she was hopeful a deal could be reached with the White House before that date, but it is unlikely that the U.S. Senate will also agree.

Director of energy futures at Mizuho Securities, Bob Yawger, told Reuters: “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.”

The Organization of the Petroleum Exporting Countries (OPEC), has been planning to ease previously agreed production cuts, however, this is looking increasingly unlikely in the present climate, with OPEC Secretary General Mohammad Barkindo saying on Monday: ““We have no illusions, this recovery will take a long time,” at the virtual 2020 India Energy Intelligence Forum.

Investors await crude oil supply data from the , due later in the day.

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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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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