The U.S. presidential election promises to dominate global news coverage for the next 24 hours, and oil markets will be watching developments closely after both WTI and Brent banked gains from the OPEC+ decision on Monday.
– The stormy political landscape in the US stands in stark contrast with Europe where several windless days have led to a rebound in natural gas prices, sending TTF futures back to €41 per MWh ($14 per mmBtu).
– In Germany alone, gas-fired generation accounted for more than 60% of the country’s energy mix due to low wind, sending spot electricity prices to their highest since early January, just below €100 per MWh.
– Europe’s gas markets are also following the path of Tropical Storm Rafael after it formed in the Caribbean recently, as its Louisiana-bound trajectory could prompt closures of offshore platforms and liquefaction terminals.
– Tropical Storm Rafael is expected to make landfall in Cuba this Wednesday already as a Category I hurricane, entering the waters of the US Gulf of Mexico around November 7.
Market Movers
– The world’s largest oil producer Saudi Aramco (TADAWUL:2222) has maintained its $31.1 billion quarterly dividend despite posting a 15.4% year-over-year decline in Q3 earnings, booking a net income of $27.6 billion.
– Norway’s state oil firm Equinor (NYSE:EQNR) has been unsuccessful with its exploration drive in Canada’s offshore waters, with the Cappahayden South well failing to find commercial volumes of oil and gas.
– Mining giant AngloAmerican (LON:AAL) has agreed to sell its 33.3% minority stake in the Jellinbah metcoal joint venture to Australian power generation firm Zashvin for $1.1 billion, as part of divestment spree.
By Michael Kern for Oilprice.com