- WTI is down 58c to $40.02/Bbl, and Brent is down 57c to $42.29/Bbl.
- Oil is trading 50c lower this morning, with futures falling below $40
- The market received several key bearish news items regarding an increase in output this weekend, including Norway, Libya, and Hurricane Delta, which collectively account for 2,113 MBbl/d. This will likely create some selling pressure today as the market reacts to the hike in output
- Last week's reduction in output contributed to the buying pressure that helped crude prices rise 9% on the week. As Coronavirus cases continue to pile, the market will shift its eye to demand to see how consumption in Europe and Asia are affected by the rise in Coronavirus cases
- The National Oil Corp (Libya) lifts force majeure on its largest field, the Sharara
- The field will initially produce at a rate of 50 MBbl/d, before reaching its capacity of 300 MBbl/d next week, according to the National Oil Corp
- That would double Libya's oil production, bringing the total to 600 MBbl/d
- The Norway oil strike came to an end last Friday after successful mediation talks
- The strike had already caused around 130 MBbl/d (8%) of Norway's output to be shut-in, and an additional 460 MBbl/d was slated to be shut-in if no deal was reached this weekend
- The majority of GoM oil and gas output remains offline, as Hurricane delta leaves the region
- 1,683 MBbl/d (91%) remains offline; however, companies have begun sending personnel back to work. Chevron Corp. began sending workers back offshore and restoring shut-in oil and gas wells, according to a company statement
- No major refinery outages have been announced yet, though several were said to have been affected by the storm. The nation's largest refinery, Motiva — Port Arthur, Tx, had several key units knocked offline, according to Bloomberg