Released November 05, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--U.S. crude oil prices were in rally mode on the day before presidential elections as OPEC opted to delay the unwinding of voluntary production cuts and a tropical storm threatened production centers in the Gulf of Mexico.
A hurricane watch is in effect for the Cayman Islands as Tropical Depression 18 moves north toward the Gulf of Mexico. The National Hurricane Center on Monday said the storm has a 100% chance of forming into a hurricane this week.
Forecast cones show the storm entering the Gulf of Mexico as a hurricane, but then dissolving to a tropical storm as it approaches landfall either late Friday or Saturday. The 2024 hurricane season has largely spared the dense network of refineries and production centers along the Gulf Coast, but the path of this one may be significant for the sector.
No offshore installations had been evacuated as of Monday and the Bureau of Safety and Environmental Enforcement, an offshore regulator, has yet to activate its hurricane monitoring team. The U.S. Coast Guard, however, set conditions at X-Ray for Monday at Key West due to the threat of gale-force winds from the storm.
"Mariners are reminded there are no safe havens in these facilities, and ports are safest when the inventory of vessels is at a minimum," the Coast Guard said.
Elsewhere, OPEC+, a group that consists of the core members of the Organization of the Petroleum Exporting Countries and non-member state allies such as Russia, opted to delay the unwinding of a voluntary restraint effort that was sidelining 2.2 million barrels per day in oil (BBL/d).
OPEC on Sunday announced the decision without explanation, and markets were rallying on the news on Monday. West Texas Intermediate, the U.S. benchmark for the price of oil, was up nearly 3% in pre-market trading to reach $71.50 per barrel.
"The market reaction is understandable in the twitchy context of a threatened attack from Iran into Israel and the U.S. election, but on closer consideration the move is defensive," John Evans, a market analyst for London oil broker PVM, said in a Monday newsletter.
Markets are indeed on edge due to war drums in the Middle East, though energy has been largely spared over more than a year of conflict. Both warring parties--Israel and Iran--may be assessing their strategic options, meanwhile, on the eve of the U.S. presidential elections.
The race appears close between former Republican President Donald Trump and Vice President Kamala Harris. Neither one would presumably take any decisive action that would end the conflict in the Middle East as women's rights, immigration and the economy take center stage for many U.S. voters.
On the economy, Harris would be expected to largely continue on with President Joe Biden's policies by catering to middle- and lower-class families with tax cuts, while Trump would enact sweeping tariffs that could throttle growth.
On energy, Harris again would likely carry on with Biden's agenda on green energy, while Trump would revert to a decidedly pro-fuels energy policy.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
A hurricane watch is in effect for the Cayman Islands as Tropical Depression 18 moves north toward the Gulf of Mexico. The National Hurricane Center on Monday said the storm has a 100% chance of forming into a hurricane this week.
Forecast cones show the storm entering the Gulf of Mexico as a hurricane, but then dissolving to a tropical storm as it approaches landfall either late Friday or Saturday. The 2024 hurricane season has largely spared the dense network of refineries and production centers along the Gulf Coast, but the path of this one may be significant for the sector.
No offshore installations had been evacuated as of Monday and the Bureau of Safety and Environmental Enforcement, an offshore regulator, has yet to activate its hurricane monitoring team. The U.S. Coast Guard, however, set conditions at X-Ray for Monday at Key West due to the threat of gale-force winds from the storm.
"Mariners are reminded there are no safe havens in these facilities, and ports are safest when the inventory of vessels is at a minimum," the Coast Guard said.
Elsewhere, OPEC+, a group that consists of the core members of the Organization of the Petroleum Exporting Countries and non-member state allies such as Russia, opted to delay the unwinding of a voluntary restraint effort that was sidelining 2.2 million barrels per day in oil (BBL/d).
OPEC on Sunday announced the decision without explanation, and markets were rallying on the news on Monday. West Texas Intermediate, the U.S. benchmark for the price of oil, was up nearly 3% in pre-market trading to reach $71.50 per barrel.
"The market reaction is understandable in the twitchy context of a threatened attack from Iran into Israel and the U.S. election, but on closer consideration the move is defensive," John Evans, a market analyst for London oil broker PVM, said in a Monday newsletter.
Markets are indeed on edge due to war drums in the Middle East, though energy has been largely spared over more than a year of conflict. Both warring parties--Israel and Iran--may be assessing their strategic options, meanwhile, on the eve of the U.S. presidential elections.
The race appears close between former Republican President Donald Trump and Vice President Kamala Harris. Neither one would presumably take any decisive action that would end the conflict in the Middle East as women's rights, immigration and the economy take center stage for many U.S. voters.
On the economy, Harris would be expected to largely continue on with President Joe Biden's policies by catering to middle- and lower-class families with tax cuts, while Trump would enact sweeping tariffs that could throttle growth.
On energy, Harris again would likely carry on with Biden's agenda on green energy, while Trump would revert to a decidedly pro-fuels energy policy.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
