Britain and Czech Republic Tighten Lockdowns
October 13, 2020
“Renewed post hurricane production in the Gulf of Mexico, an apparent restart over the weekend of Libya’s largest oil field and today’s strength in the US dollar increase the possibility of a WTI downswing back to early October lows,” said Jim Ritterbusch, of Ritterbusch and Associates.
The thought that the Biden and Harris ticket could win has many thinking there would be more crude oil from Iran and Venezuela and that has put some sell pressure on crude prices.
But here is Goldman Sachs opinion about the election. Goldman Sachs said the outcome of the US elections would not impact its bullish oil and natural gas outlook and that an overwhelming Democratic victory could be a positive catalysts for these sectors. Goldman reiterated its bullish 2021 view for both natural gas and oil. Saying drivers for higher prices superseded the potential outcomes of the US election. It stated that headwinds to US oil and gas production would increases further under a Biden administration, with the potential for regulations raising the cost of shale production and reducing recoverable shale resources. Goldman Sachs also stated that Biden’s climate priorities also point to a faster deployment of renewable sources of energy than currently expected and added that such an agenda would require new infrastructure which alongside a likely large initial stimulus, would lead to higher oil demand in coming years.
The stimulus talks are still deadlocked.
From Bloomberg: The Paris-based International Energy Agency (IEA) said that the pandemic will have a permanent effect on global oil demand. In its latest report, it predicts that consumption of crude will plateau around 2030, but at a lower level than previously forecast. The agency also said that achieving net-zero greenhouse gas emissions by 2050 would be a mammoth task for governments and policy makers.
China reported it imported 11.8 million bpd of crude oil in September up from 11.18 in August and up from 10.04 million bpd last September.
Rising cases of COVID-19 has caused Britain and the Czech Republic to tighten lockdowns.