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Norway Strike, Hurricane Delta, Trump Stimulus Reversal

October 6, 2020

Oil rallied on (1) stimulus hopes (2) Hurricane Delta shut-ins and (3) the loss of 330KBpd of oil from a workers strike in Norway. While Norwegian strikes typically do not last, it tightened up the Brent physical market. Additionally, the one area which has seen (record) shorts has been in Brent, so financial flows were probably supportive as well. 

 

Natural Gas rallied and then fell, as Hurricane Delta's path was deemed bullish for shut-ins but then was deemed a bigger risk to Cameron/Sabine LNG exports. If the path does not arc back East, there could be a loss of exports again.

 

Late in the session, at ~2PM CT, President Trump tweeted that he had suspended stimulus talks until after the Election. This sent markets, including Oil, into "Risk Off" mode. Nov WTI Crude Oil closed +$1.45/Bbl at 130PM but was off -$0.80/Bbl is evening trade.  

 

  



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