Oil Prices Steady Amid Return of Supply, While COVID-19 Lockdowns Tighten | Investing News

MELBOURNE (Reuters) – Oil prices were steady in early trade on Tuesday, sitting on losses of nearly 3% from the previous session after supplies began to resume in Norway and the U.S. Gulf of Mexico and Libya resumed production at its largest oilfield.

The return of supply comes as resurgent COVID-19 infections in the U.S. Midwest and Europe raise worries about fuel demand growth, posing a challenge for the Organization of Petroleum Exporting Countries and its allies, together called OPEC+.

OPEC+ has curbed supply to help shore up oil prices amid coronavirus pandemic, with cuts of 7.7 million barrels per day due to hold through December. The producers’ market monitoring panel is due to meet next Monday.

“It won’t be a huge surprise if finally the alliance decides to address the worsening situation and amend its action,” Rystad Energy’s head of oil markets, Bjornar Tonhaugen, said in a note.

U.S.

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Oil Prices Extend Losses as U.S. Producers Restore Output Post-Hurricane | Investing News

SINGAPORE (Reuters) – Oil prices dropped for a second straight session on Monday as U.S. producers began restoring output after Hurricane Delta weakened, while a strike that had affected production in Norway came to an end.

Brent crude

for December fell 55 cents, or 1.3%, to $42.30 a barrel by 0023 GMT and U.S. West Texas Intermediate

for November was at $40.08 a barrel, down 52 cents, or 1.3%.

Front-month prices for both contracts gained more than 9% last week, the biggest weekly rise for Brent since June, but fell on Friday after Norwegian oil firms struck a wage bargain with labour union officials, resolving a strike that threatened to cut the country’s oil and gas output by close to 25%.

“We had good support for both Brent and West Texas on the back of some supply concerns,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“Given

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Oil Prices Fall on U.S. Stimulus Impasse, Rising U.S. Crude Stockpiles | Investing News

SINGAPORE (Reuters) – Oil prices fell on Wednesday after U.S. President Donald Trump dashed hopes for a fourth stimulus package to boost the coronavirus-hit economy and on a larger-than-expected increase in U.S. crude inventories.

U.S. West Texas Intermediate (WTI) crude

oil futures declined 42 cents, or 1%, to $40.25 a barrel by 0648 GMT while Brent crude

futures fell 30 cents, or 0.7%, to $42.35 a barrel.

“Crude prices got hammered with one-two punch after President Trump sent all risky assets into freefall after ending negotiations on fiscal stimulus and after US crude stockpiles posted their first build in four weeks,” said Edward Moya, senior market analyst at OANDA.

President Trump, still being treated for COVID-19, ended talks on Tuesday with Democrats on an economic aid package for the United States, the world’s biggest oil consumer, with the U.S. presidential election only weeks away.

“President Trump’s decision to end fiscal

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Oil gains after biggest one-day rally in five months as presidential homecoming lifts sentiment


  • Oil prices extended gains on Tuesday after Monday’s “presidential homecoming” triggered a big rally and lifted investor sentiment alongside worker strikes in Norway and a hurricane in the US.
  • Brent crude leapt 6% to $41.5 a barrel and US benchmark West Texas Intermediate jumped 6.3% to $39.5 on Monday, recovering the lion’s share of the heavy losses late last week.
  • A worker strike in Norway’s oil and gas industry and the start of evacuations in the Gulf of Mexico ahead of the expected Hurricane Delta helped lift prices on Tuesday.
  • However, an OANDA analyst warned that betting on Brent’s rise to $44, or WTI near $42, would be a “painful trade.”
  • Visit Business Insider’s homepage for more stories.

Oil prices extended gains on Tuesday, following Monday’s explosive rally that followed President Donald Trump leaving the Walter Reed National Military Centre to return to the

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EUR/CAD Could Hit 1.60 Even With Greater Oil Market Stability

The EUR/CAD currency pair, which expresses the value of the euro in terms of the Canadian dollar, is currently trading in a relatively steady fashion following a significant rise versus the start of the year. In January 2020, EUR/CAD opened from the 1.45 handle; the pair is currently trading at the 1.55 handle.

EUR/CAD Trading Range in 2020(Source: Trading View. The same applies to all subsequent candlestick charts presented hereafter.)

The significance of the wide departure is greater in broader context. For example, major FX pairs such as AUD/USD crashed significantly in the first quarter of 2020, and yet most recently they have made gains on the year (relative to the opening prices of January 2020). The fact that EUR is still trading firmly above this year’s opening price provides us with confirmation that EUR/CAD is not ready to return to its previous trading range.

Probably the most important reason is that

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Oil prices on track for weekly fall on worries over COVID-19 impact on crude demand

Oil futures lost ground Friday, leaving both major benchmarks on track for their third weekly decline in four weeks as worries about the demand outlook grow in response to rising COVID-19 cases.

“Investors have become more cautious this week in general…as recent increases in coronavirus cases has increased questions over what a second wave could mean for the world economy and resource demand,” Colin Cieszynski, chief market strategist at SIA Wealth Management, told MarketWatch.

A rebound in the U.S. dollar this week has also weighed on dollar-denominated oil prices, he said. The ICE U.S. Dollar Index
DXY,
+0.34%

 was up around 1.9% for the week.

West Texas Intermediate crude for November delivery
CL.1,
-0.54%

 
CLX20,
-0.54%

 fell 40 cents, or 1%, to $39.91 a barrel on the New York Mercantile Exchange following a similar rise a day earlier.

Front-month November Brent
BRNX20,
-0.38%

 fell 26 cents, or 0.6%, to $41.68

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Iran reportedly loading Venezuelan oil for sale abroad

Sep 23, 2020

An Iranian fuel tanker has reportedly reached Venezuela and is loading the South American country’s oil for sale abroad, despite continued US efforts to stop such transfers.

The Iran-flagged vessel Honey is currently docked in Venezuela, the financial news outlet Bloomberg reported on Tuesday. It is loading Venezuelan crude oil to be sold in Asia. Last week, the ship, which also goes by the name Horse, unloaded Iranian fuel in Venezuela.

The ship did not use its satellite signal to avoid being detected by the United States, according to Bloomberg. The ship tracking website Marine Traffic reported that the Iranian ship Horse was confirmed as being off the coast of Iran on Sept. 8. The tanker does not list a destination.

 In August, the US seized more than a million barrels of Iran oil purportedly heading to Venezuela aboard four ships. The companies responsible for the shipment

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Is Oil And Gas A Viable Replacement Property Opportunity For A 1031 Exchange DST?

Oil and natural gas investing, like other real assets, can provide a protective hedge to inflation. While depressed oil and gas commodity prices negatively impact returns, oil and gas investments may perform better than traditional stocks and bonds in an economic downturn or during periods of excess inflation.

What is a 1031 Exchange?

The 1031 Exchange name comes from Internal Revenue Code Section 1031. It enables you to defer capital gains tax and depreciation by reinvesting the proceeds from the sale of investment property into a replacement property, thus preserving significant wealth.

Section 1031 exchange deferrals may be continued through a series of exchanges. However, selling the property without exchanging into a new property would potentially trigger a realization of capital gains and possible depreciation recapture. 

What is a DST?

DST is the abbreviation for Delaware Statutory Trust. A DST is an entity which may hold title for real

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