Recap: Oil prices slipped to their lowest level in a month after non-OPEC members refuse to commit to a cut or freeze in production without an agreement from OPEC. WTI for December delivery fell $1.84, or 3.8% to settle at $46.86, while December Brent lost $1.41, or 2.8%, to finish at $48.30 a barrel.
December WTI slipped below $46.90, the 50% retracement between $52.22 and the August low of $41.58. Today's move also pushed this spot contract below $48.30 and $48.29, the 100 and 50 day moving averages respectively. With a settlement below these technical numbers the opportunity for a run at $45.62, has opened up. This number represents the 62% retracement of the move from $41.58 and $52.22.
November RBOB fell 1.96 cents, or 1.3%, to $1.4495 a gallon, while November heating slipped 4.67 cents, or 3%, to $1.4955 a gallon. The RBOB market reversed its losses and rallied 11% higher overnight on news that the Colonial Pipeline was shut again on Monday after contractors in Alabama conducting maintenance caused a blast.
Fundamental News: Officials and experts from OPEC and non-OPEC countries including Azerbaijan, Brazil, Kazakhstan, Mexico, Oman and Russia met for consultations in Vienna on Saturday and only agreed to meet again in November before a scheduled regular OPEC meeting on November 30th.
A Nigerian oil workers union confirmed an attack on a pipeline operated by NNPC in the Niger Delta. The Greenland Justice Mandate group said it attacked the Efurun-Otor line operated by NPDC, a unit of NNPC.
Separately, Nigerian communities affected by an oil spill in the Niger Delta hub threatened to block access to a pipeline unless NNPC provides a cleanup and compensation within one week. A pipeline operated by NNPC that runs Escravos to the Warri refinery has been leaking crude since it broke on August 17th in Delta state.
The Niger Delta Avengers, a Nigerian militant group, threatened on Monday to step up attacks on oil facilities in the Niger Delta if the president pursues a military campaign. On Tuesday, Nigeria's President, Muhammadu Buhari, is due to meet with Niger Delta leaders and representatives of various militant groups in Abuja, the first time since the government began talks in June to end attacks on oil facilities.
Venezuela's President, Nicolas Maduro, and opposition leaders in Venezuela agreed to continue a Vatican-backed dialogue following initial talks meant to ease an escalating political standoff. The two sides, which over the years have held talks that generated few concrete results, will meet again on November 11th. President Nicolas Maduro's adversaries accused him of creating a dictatorship by blocking a recall referendum on his rule and of illegally overriding the legislature. The opposition insists that the government allow a recall referendum on Maduro's rule, release dozens of jailed opposition activists and respect Congressional decisions.
The Seaway Crude Pipeline Co resumed operations of its 400,000 bpd Legacy, or S-1 pipeline, which runs between Oklahoma and the Gulf Coast. It shut down the pipeline on October 23rd when a spill was discovered near the start of the line in Cushing, Oklahoma.
Total US waterborne LPG exports from Houston, Port Arthur, Philadelphia and Seattle increased by 11.6% in the week ending October 27th to 1.059 million bpd from 949,756 bpd.
IIR reported that US oil refiners are expected to shut in 622,000 bpd of capacity in the week ending November 4th, increasing available refining capacity by 507,000 bpd from the previous week. IIR expects offline capacity to fall to 393,000 bpd in the week ending November 11th.
Early Market Call - as of 9:00 AM EDT
WTI - Dec $47.22, up 36 cents
RBOB - Nov $1.5626, up 14.35 cents
HO - Nov $1.5600, up 5.56 cents
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