Phil Flynn is writer of The Energy Report, a daily market commentary discussing oil, the Middle East, American government, economics, and their effects on the world's energies markets, as well as other commodity markets. Contact Mr. Flynn at (888) 264-5665
The American Petroleum Institute report may be anti-climactic as the world awaits the U.S Presidential debates. It will be a Clash of Titans. Vice President Joe Biden with over 50 years of experience and energy policy versus the reigning champion and outsider from New York, the brash and bold, President Donald Trump.
President Trump is expected to win in a knockout as he been taking punches daily from a hostile press. Vice President Biden has been hiding out and may get a oral victory if he can remember where he is. Vice President Biden has, until this point, refused to answer tough questions and has not shown that he can handle the heat. Tonight he should get it in spades as Chris Wallace from Fox News will moderate the debate and not let Joe Biden or President Trump, for that matter, off of the hook. This election will not only decide what kind of country we want to be but also the future of US energy and security.
Most of the news on oil is supportive except for fear of another round of corona virus infections and the continuing return of Libyan crude. Around the globe, oil supply is tightening, and we see reports of increased Japan imports of oil and more stories of gasoline into India. The U.S. is threatening more sanctions on Iran as they continue to thwart the U.S. by exporting oil to Venezuela. Stimulus hopes are keeping risk on, but Covid fears are keeping that in check. In Libya, oil production is also harmful as its production has risen 250,000 barrels a day and could rise to over one million barrels a day by the end of the year.
OPEC has not said how they will adjust output if the Libyan oil comes back continues. At some point, they will have to face the fact that Libyan oil might continue to flow, unlike previous attempts to go back online.
Reuters reports that Indian refiner Bharat Petroleum Corp BPCL. N.S. will continue to import gasoline for the next few months as its crude processing is hit due to lower demand for diesel that accounts for 40%-45% of its product slate. S&P Global Platts is reporting, “Kurdistan regional government in Iraq is considering transferring its oil assets to the federal government in Baghdad in exchange for it to paying its public sector salary bill, two sources with knowledge of the situation.”
The Big Presidential Debate is tonight. There is no doubt that fracking will come up. One would assume that if Vice President Joe Biden becomes president, it will be harmful to U.S. oil and gas interests, and it will cause higher prices for gasoline and heating your home.
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