US GDP Rebounds
October 30, 2020
The big news from yesterday was the report that US GDP grew at its fastest pace ever in the third quarter. Third quarter gross domestic product, a measure of the total goods and services produced in the July to September time frame , expanded at a 33.1% annualized rate, according to the Commerce Department.
A Libyan oil source said Libya’s oil production currently stands at 680,000 bpd.
OPEC and industry sources said the UAE, Kuwait and Iraq are debating whether they should roll over existing oil supply cuts into 2021, as they struggle to stick to their agreed reductions. Their hesitance raises the possibility of reviewing output targets when OPEC meets In November to decide on its production policy and could create further friction within OPEC+ group. Complicating efforts to rebalance the market amid weak global demand. Saudi Ariba and Russia are in favor of continuing with their current oil production cuts around 7.7 million bpd into next year, rather than easing them by 2 million bpd from January. The UAE is finding it difficult to continue the cuts because of its deals with international oil companies and the baseline production used for cuts is too low compared with its output capacity.
Rising cases of COVID and the new lockdowns are still putting pressure on energy prices. WTI crude oil traded to a five month low yesterday. The energy markets have been uneventful so far today and the markets are flat. The sell off yesterday took the markets to the lower end of the recent trading ranges and are they just treading water so far today as the markets tries to figure out the next move.
The news that the markets are trying to digest remain the same, rising covid cases, lockdowns, expected lower energy demand, Increases to Libyan production, no stimulus, and OPEC+ decision about production at its meeting at the end of next month.