OPEC+ still sees a global supply versus demand deficit, so even if they raise production at this meeting, perhaps next year we’ll see very little from them.
It’s estimated that approximately 94.6% of the current oil production and approximately 93.57% of the gas production in the Gulf of Mexico has been shut in.
Ida hit 95% of crude oil production in the Gulf of Mexico and shut down over 95% of natural gas production. The market is trying to determine the extent of the damage to refineries.
Reports are stating that BP evacuated 4 oil production platforms and shut down U.S. Gulf of Mexico production. The storm will also slow down petroleum and natural gas exports and imports.
Iran's new President Ebrahim Raisi has not been on his best behavior. The actions of Iran have been increasingly aggressive, dangerous, and provocative and not conducive to securing a deal to lift sanctions on Iranian oil.
Last week, we heard a lot of “doom and gloom” talk about the rise of Covid-19 cases, but now we seem to be flipping back towards optimism about economic growth and continued stimulus.
Oil prices got hit in risk-off mode by the Fed’s suggestion that tapering of the asset could happen this year, along with continuing concerns of Covid-19 spread and a lack of confidence in the leader of the free world.
