*US Shale Producers’ Race for Federal Permits ahead of the Election*
Oil producers in the US are stockpiling drilling permits in a bid to prepare for life under a democratic government who have pledged to clamp-down on the controversial method of drilling for oil. Biden currently leads Trump in analysts’ polls by several points according to Reuters. Although his mandate does not ban fracking and drilling, it does look to become more stringent with oil and gas permits banned on public land in Biden’s climate plan.
*Big Trade Houses See Persisting Oil Stocks Bubble*
Trading firms saw revenues spike thanks to heightened volatility during the first half of 2020, but the second half looks a lot less certain as a result of gluts in supply backlogged shipments into China, and uncertain demand from the likes of the Asian region according to the CEO of Mercuria Energy Trading. The market is expected to be drawing 3 to 4 million barrels per day of crude and products, but this is not the case.
*Shandong Independent Refiners to Keep Sep Run Rates Above 70%*
Independent refiners in China are likely to keep run rates at around 70% according to S&P as refining margins remain steady. The only refinery shut for a 45-day maintenance period is the Dongying Petrochemical plant, with the others remaining open due to steady and profitable cracking of imported crudes.
*Crude Oil Futures Mixed on Protracted Demand Concerns*
Market participants are assessing the supply-demand fundamentals as global demand weighs heavy of the price of crude. Crude is taking its time to find the bottom said the CEO of Vanda in an interview with S&P, who went on to note that there are no factors in the near future to suggest a rebound of the past two weeks’ losses. Saudi Aramco have cut the official selling price for its October contracts suggesting a weaker than expected recovery.