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Hurricane Delta squeezes oil market, already tight on supply

Hurricane Delta squeezes oil market, already tight on supply

Hurricane Delta’s path through the Gulf of Mexico squeezed the oil market, driving up prices and forcing companies to evacuate facilities ahead of the storm’s arrival, according to reports.

Energy companies worked to secure facilities and clear out employees as early as Tuesday, when the hurricane reached Category 4 status, and wind speeds reach between 130-156 mph.

Safety precautions drove oil prices up by more than 3% on Tuesday, further boosted by a workers’ strike in Norway and possible stimulus from the government, Al Jazeera reported. U.S. petrol futures rose 2% and hit their highest level since Sept. 28.

The storm warnings and dangers forced closure of 29.2% of offshore crude oil production in the northern Gulf by Tuesday, as well. That number rose to more than 80% closures by Thursday, according to the Independent Commodity Intelligence Services.

OIL PRICES RISE AS WORKERS EVACUATE OIL RIGS IN GULF AS HURRICANE DELTA APPROACHES

Bloomberg reported that the closures pushed oil beyond $40 a barrel as a result.

“Hurricane Delta has supported the latest recovery” in prices, said Ole Hansen, head of commodities strategy at Saxo Bank. “Renewed stimulus hopes have generally given assets a risk-on boost.”

The U.S. Bureau of Safety and Environmental Enforcement equated those closures to a decrease of 1.49m bbl/day and 1.33 billion cubic feet of gas since Wednesday.

CHEVRON WORKERS FACE DEMANDS TO REAPPLY FOR JOBS UNDER GLOBAL RESTRUCTURING – SOURCES

Remaining petrochemical plants and refineries in Louisiana and the surrounding area continue to monitor the storm before deciding whether or not to shut down operations as a precaution. The storm weakened to a Category 2, with a brief return to a Category 3,

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How a Biden presidency may lead to increased supply in the oil market

How a Biden presidency may lead to increased supply in the oil market

  • A Biden presidency could bring 1 million barrels per day of Iranian oil back into the market, but lead to lower demand in the long run because of environmental concerns, said David Fyfe of Argus Media.
  • On the flip side, the Democrat’s policies on climate change — including re-entering the Paris Climate Accord — could be “bearish” for demand over the long run, he said.
  • Fyfe also said that his base case is for a “steady recovery” in oil, and that prices could return to the $50 to $55 range by late 2021.



a large ship in a body of water: An off-shore oil platform off the coast in Huntington Beach on Sunday, April 5, 2020.


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An off-shore oil platform off the coast in Huntington Beach on Sunday, April 5, 2020.

SINGAPORE — A Biden presidency could bring 1 million barrels per day of Iranian oil back into the market, but lead to lower demand in the long run, an economist said this week.

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That’s because Democratic presidential candidate Joe Biden is likely to reestablish relations with Tehran if he is elected, but introduce environmental policies that limit U.S. oil and gas, said David Fyfe of Argus Media.

“Arguably, a Biden presidency would move fairly rapidly toward some sort of rapprochement with Iran,” he told CNBC’s “Capital Connection” on Friday.

“That of course could lead to maybe up to a million barrels a day of Iranian oil coming back onto the market,” he said. “It might not happen immediately, but you could see that happening within the sort of first six months of a Biden presidency.”

By contrast, the Trump administration has put maximum pressure on Iran, which has seen heavy economic sanctions imposed on the Islamic Republic, including on its oil exports.

OPEC has a ‘pretty bullish’ long-term oil demand forecast, says economist

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Biden has been leading President Donald Trump in

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