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Crude oil: Biden presidency likely to be a huge win for the Middle East

A Biden win will likely be an upward catalyst for oil prices because it will increase costs for shale patch and will likely result in a weaker U.S. dollar, the report said.

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New Delhi, Oct 16 : A Biden presidency is likely to be a huge win for the Middle East to gain back the market share as it restricts shale production and can be supportive for crude oil prices.

According to a report by Motilal Oswal Financial Services, for years, if not decades, OPEC members have been jousting for market share, which is, of course, the reason why the latest Saudi-Russia oil price war happened in the first place.

“A Biden presidency is likely to be a huge win for the Middle East to gain back the market share as it restricts shale production and can be supportive for crude oil prices,” the report said.

Talking about the OPEC approach, Trump would likely continue practicing Twitter oil diplomacy, which he started in his first term to urge OPEC plus producers to increase or cut supply during their meetings in Vienna. He takes credit for helping to negotiate an end to the March oil price war between Saudi Arabia and Russia.

“Under Biden, any US diplomacy toward OPEC might return behind the scenes. Antitrust legislation against OPEC would only see renewed interest if gasoline prices soar,” the report said.

Crude oil investors are facing a confused stance as US President Donald Trump’s presidency brings stability and Presidency under Joe Biden might bring uncertainty and more volatility in the market.

Prices can remain in levels of $45 as President Trump would like to keep prices at this level to make sure gasoline prices remain in control, which remains a main concern of taxpayers in U.S.

If U.S. voters decide to stay the course, the current push for energy dominance through increased drilling will continue. He is seen as a promoter of Shale which might put pressure as any stimulus and benefit to shale sector would lead to overproduction and more responsibility on OPEC plus to cut production and bring balance in the market.

Compared with a second term of the Trump administration, a Biden presidency could be a positive for U.S. oil and gas drillers because tougher regulations on hydraulic fracturing would likely reduce production, raising crude prices to levels of WTI $45-$55 in coming months after elections. If they elect a new president, the challenger has pledged to end new drilling on public lands and move toward a carbon-free future.

With his $2 trillion plan to cut greenhouse gas emissions, Joe Biden might seem a far-from-ideal president for the Texas oil and gas industry. Looks like for Crude oil to rally, markets are praying for Vice President Biden to win and bring back optimism in the market as demand recovery is stalling and it might take more months for crude demand to recover.

A Biden win will likely be an upward catalyst for oil prices because it will increase costs for shale patch and will likely result in a weaker U.S. dollar, the report said.

However, headwinds remains to this optimistic view that if sanctions are pulled off from Venezuela or Iran, they might re-emerge as a significant oil exporter, it might put pressure on prices and can force adjustment in production for the three big oil producers and likely a reduction in through cycle prices which can push additional pressure on prices and bring back glut fears and push prices to levels of $35.

Disaster

Death toll from Turkey’s earthquake rises to 35: Minister

Meanwhile, rescue teams saved a mother and her three children from rubble 23 hours after the earthquake.

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Fahrettin Koca

Istanbul, Nov 1 : Turkish Health Minister Fahrettin Koca said that the death toll in the strong earthquake that hit Turkey’s western province of Izmir has increased to 35.

Speaking to reporters in Izmir on Saturday, Koca said 243 people are under treatment in the hospitals, while eight others in intensive care units, three of whom are in critical condition, Xinhua news agency reported.

Koca said earlier that at least 885 people were wounded in the tremor, which struck the Aegean Sea off the Seferihisar district on Friday.

The minister also urged citizens in the disaster areas to strictly follow the coronavirus-related rules to reduce the infection risk.

Meanwhile, rescue teams saved a mother and her three children from rubble 23 hours after the earthquake.

Another citizen was rescued from the debris of an apartment building 26 hours after the quake, according to press reports.

Rescue operations are continuing nonstop to reach more survivors trapped in the ruins.

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India

India asks Saudi Arabia to take corrective steps on bank note

The world map on the new 20 Riyal banknote, released to mark Saudi Arabia’s presidency of the G20 grouping, does not feature Jammu and Kashmir and Ladakh as part of India.

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Anurag Srivastava

New Delhi, Oct 30: India has asked Saudi Arabia to take corrective steps on the misrepresentation of its territorial boundaries on a new bank note.

The world map on the new 20 Riyal banknote, released to mark Saudi Arabia’s presidency of the G20 grouping, does not feature Jammu and Kashmir and Ladakh as part of India.

MEA Spokesperson Anurag Srivastava said India has asked Saudi Arabia to take “urgent corrective steps” in the matter, and emphasized that the entire Union Territories of Jammu and Kashmir and Ladakh are integral parts of the country.

“We have seen the banknote referred by you which gives an incorrect depiction of India’s external territorial boundaries. The note was issued by Saudi Arabian Monetary Authority on October 24 to mark the occasion of Saudi presidency of the G20,” the MEA spokesperson said.

“We have conveyed our serious concern to Saudi Arabia, both through their Ambassador in New Delhi as well as in Riyadh, for this gross misrepresentation of India’s external territorial boundaries on an official and legal banknote of Saudi Arabia and asked Saudi Arabia to take urgent corrective steps in this regard,” Srivastava said.

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Middle East

Guterres hopes Israel-Sudan agreement will bring peace to wider regions

The United Nations remains fully committed to supporting Sudan’s efforts to achieve socio-economic recovery, stability and prosperity for all people in Sudan and the wider region, the statement added.

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Antonio Guterres

United Nations: UN Secretary-General Antonio Guterres on Saturday expressed hope that the agreement between Israel and Sudan to normalise relations will create opportunities for peace and prosperity in the wider regions, said his spokesman.

Guterres took note of the announcement of the agreement by the governments of the United States, Israel and Sudan, Xinhua news agency reported.

He hoped the agreement will further cooperation, enhance economic and trade relations, and bring about new opportunities to advance peace and economic prosperity in the wider Horn of Africa and Middle East regions, said Stephane Dujarric, the spokesman, in a statement.

The United Nations remains fully committed to supporting Sudan’s efforts to achieve socio-economic recovery, stability and prosperity for all people in Sudan and the wider region, the statement added.

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