Oil Holds Near Four-Week Low After Plunging on Resurgent Virus, , on October 29, 2020 at 7:19 am

By High West Capital Partners
On October 29, 2020
Tags:

(Bloomberg) — Oil held near a four-week low after a surge in European virus cases and a bigger-than-expected jump in American crude stockpiles pushed prices down by the most in almost two months in the previous session.Futures in New York were steady near $37 a barrel after plunging 5.5% Wednesday. Germany and France, the European Union’s two biggest economies, will clamp down on movement for at least a month to try and curb Covid-19’s spread. The benchmark S&P 500 Index fell the most since June on fears the resurgent virus will throw the global recovery into reverse.American crude inventories rose by 4.32 million barrels last week, the most since July and almost three times more than forecast, Energy Information Administration data show. Still, distillates stockpiles fell more than expected.Oil is on track for its worst month since April as the pandemic’s resurgence in Europe and the U.S. coincides with an increase in supply from Libya. The head of Saudi Aramco’s trading unit warned there may not be enough demand to absorb the planned OPEC+ supply increase in January and traders are cautious of taking long positions on crude due to the uncertain outlook.“The data that have been coming out looking awfully weak and it’s barely a surprise to see inventories turning higher in the wake of the softening economic backdrop,” said Howie Lee an economist at Oversea-Chinese Banking Corp. in Singapore. “I expect OPEC+ will delay the supply increase by three months to April 2021.”The growing nervousness is being reflected in oil’s market structure. Brent’s three-month timespread was $1.26 a barrel in contango — where prompt prices are cheaper than later-dated ones — compared with 86 cents at the end of last week. The change suggests fears of a glut are rising.OPEC+ started to taper its production cuts from August, and there are growing signs the group may delay the planned next phase of the easing in January. If the refiners are cutting throughput, that’s a good indication the market isn’t there, said Ibrahim Al-Buainain, chief executive officer of Aramco Trading.See also: Oil Market Faces Iran Shock If Biden Win Points to Nuclear DealTropical Storm Zeta, meanwhile, is spinning across central Alabama after being downgraded from a hurricane. Two-thirds of oil production in the Gulf of Mexico has been shut down, although that’s failed to ignite a meaningful recovery in prices so far.(An earlier version of this story corrected the direction of the move in U.S. stockpiles in the sub-head of the chart.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.,

Oil Holds Near Four-Week Low After Plunging on Resurgent Virus(Bloomberg) — Oil held near a four-week low after a surge in European virus cases and a bigger-than-expected jump in American crude stockpiles pushed prices down by the most in almost two months in the previous session.Futures in New York were steady near $37 a barrel after plunging 5.5% Wednesday. Germany and France, the European Union’s two biggest economies, will clamp down on movement for at least a month to try and curb Covid-19’s spread. The benchmark S&P 500 Index fell the most since June on fears the resurgent virus will throw the global recovery into reverse.American crude inventories rose by 4.32 million barrels last week, the most since July and almost three times more than forecast, Energy Information Administration data show. Still, distillates stockpiles fell more than expected.Oil is on track for its worst month since April as the pandemic’s resurgence in Europe and the U.S. coincides with an increase in supply from Libya. The head of Saudi Aramco’s trading unit warned there may not be enough demand to absorb the planned OPEC+ supply increase in January and traders are cautious of taking long positions on crude due to the uncertain outlook.“The data that have been coming out looking awfully weak and it’s barely a surprise to see inventories turning higher in the wake of the softening economic backdrop,” said Howie Lee an economist at Oversea-Chinese Banking Corp. in Singapore. “I expect OPEC+ will delay the supply increase by three months to April 2021.”The growing nervousness is being reflected in oil’s market structure. Brent’s three-month timespread was $1.26 a barrel in contango — where prompt prices are cheaper than later-dated ones — compared with 86 cents at the end of last week. The change suggests fears of a glut are rising.OPEC+ started to taper its production cuts from August, and there are growing signs the group may delay the planned next phase of the easing in January. If the refiners are cutting throughput, that’s a good indication the market isn’t there, said Ibrahim Al-Buainain, chief executive officer of Aramco Trading.See also: Oil Market Faces Iran Shock If Biden Win Points to Nuclear DealTropical Storm Zeta, meanwhile, is spinning across central Alabama after being downgraded from a hurricane. Two-thirds of oil production in the Gulf of Mexico has been shut down, although that’s failed to ignite a meaningful recovery in prices so far.(An earlier version of this story corrected the direction of the move in U.S. stockpiles in the sub-head of the chart.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

+65 3105 1295

Taiwan

Coming Soon!

Hong Kong

R91, 3rd Floor,
Eton Tower, 8 Hysan Ave.
Causeway Bay, Hong Kong
+852 3002 4462

Market Coverage