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President Joe Biden's promised ban on new oil and gas drilling on federal lands would take years to shut off production from top shale drillers because they already have stockpiled permits. Biden's vow to toughen regulations and stop issuing new permits on federal lands, part of his sweeping plan to combat climate change and bring the economy to net zero emissions by 2050.
The US Interior Department on Jan. 20 put new oil and gas lease sales and permits on federal lands and waters on hold for 60 days, according to an order signed by Acting Secretary Scott de la Vega. So the 60-day moratorium could lead into a much broader ban on new federal oil and gas leases and permits.
Incoming US president Joe Biden has drawn up a list of changes he will make on “day one” of his presidency. Biden has pledged significant changes to oil and gas leasing for US operators, but this legislation would need to pass through the US congress.This includes changes to oil and gas policies made by previous president Donald Trump.
Joe Biden’s move to block the $9 billion Keystone XL project is the clearest sign yet that constructing a major new pipeline in the U.S. has become an impossible task. Even before Biden’s inauguration, the oil and gas industry was on its back foot when it came to building major new infrastructure.
Oil prices fell on Monday, extending losses that last week ended a rally driven by production cuts and strong Chinese demand. Brent crude fell nearly 1%, to $54.65 a barrel. U.S. oil was down by nearly 1%, at $51.93 a barrel. U.S. drillers added pressure by putting more rigs to work for an eighth consecutive week last week.
The six week long futures rally has come to a halt with the increasing lockdown in Europe. As a result, oil prices fell on Wednesday. Brent dropped and was traded at $50.51 a barrel. WTI went down and was traded at $47.28 a barrel. Slower US spendings and substantial decrease in the demand for refined products has adversely affected the market sentiments.
With the rollout of COVID-19 vaccine in Britain, oil prices rose on Thursday. And the United States is also expected to approve the vaccine soon which would witness a spur in fuel demand. WTI went up by 0.5% and was traded at $45.75 a barrel. Brent increased by 0.4% and was traded at $49.07 a barrel.
Coronavirus cases continue to rise in the United States and Europe. Oil prices added to the losses of the previous session on Tuesday. WTI slipped by 0.4%, to $45.58 a barrel. Brent fell by 0.5%, to $48.55 a barrel. ANZ Research said, "For the moment, the market is happy to look past these issues as the vaccine rollout begins; however the economic headwinds are building in the short term".
On Monday, rising coronavirus cases in different parts of the world led to the decline in oil prices. The increasing tension between the US and China also contributed towards this downfall. Brent went down by 1.5% and was traded at $48.49 a barrel. WTI slipped by 1.8% and was traded at $45.44 a barrel.
OPEC+ has left the market in the state of uncertainty by delaying the decision on January's output. Oil prices dropped on Wednesday over these sentiments and a sudden build in oil inventories in the United States. Brent slipped by 0.9% and was traded at $47.01 a barrel. WTI decreased by 1% and was traded at $44.09 a barrel.
Drop in crude inventories led to the increase in US oil on Thursday. This also resulted in a series of positive sentiments concerned with coronavirus vaccine and fuel demand. WTI increased by 0.3% and was traded at $45.85 a barrel. Brent crude futures were up by 0.4% and were traded at $48.81 a barrel.
US crude stocks rose above the market expectations on Wednesday. As a result, oil prices were stable. Further, weaker US retail sales have brought back demand fears. Brent increased by 0.1% and was traded at $43.78 a barrel. WTI went up by 0.1% and was traded at $41.40 a barrel. Hopes of production cut from OPEC and its allies have held the market for now.
Reports showing more than expected decline in US crude inventories supported bolstered market sentiments. As a result, oil prices increased by 1% on Wednesday. Brent increased by 1.1% and was traded at $44.09 a barrel. WTI went up by 1.2% and was traded at $41.84 a barrel. Further, Pfizer's vaccine announcement has also brought back hope in the industry.
US oil prices experienced a substantial loss on Tuesday. The concerns over the drop in the demand have again started to haunt the market. WTI went down by 2% and was traded at $39.48 a barrel. “A viable vaccine is unequivocally game-changing for oil - a market where half of the demand comes from moving people and things around”, said JP Morgan.
New lockdowns are now effective in Europe. And the uncertainty of the US elections has kept the market on the edge. As a result, oil prices have further suffered a drop of nearly 1% on Friday. WTI decreased by 0.8%, to $38.47 a barrel. Brent also went down. European Union's executive commission has predicted that it will not see a rebound in the economy to pre-virus level till 2023.
Oil prices dropped by 1% over the US election uncertainty. WTI fell by 1.63% and was traded at $38.51 a barrel. Brent slipped by 1.65% and was traded at $40.55 a barrel. The current situation indicates Republicans' control over the US Senate. “Fortunately for oil markets, it would seem any olive branch to Iran will not be extended anytime soon”, said a chief market strategist at Axi.
US presidential election has impacted the oil prices making them go steady on Tuesday. However, the gains are capped by the surplus supply worries. Brent inched up and was traded at $38.98 a barrel. WTI increased by 0.2% and was traded at $36.89 a barrel. With the second series of the lockdown being imposed in various parts of Europe, fuel demand hit a speed hump.
The repeated storms which entered the US this year lead to the shutdown of many O&G production facilities from time to time. Affected, Hess Corp HES.N forecasted a decline of 25,000 bpd in the current quarter on top of about 19,000 bpd loss in the prior quarter. W&T Offshore WTI.N also forecasted a fall in its O&G production for the fourth quarter, with an added $5 million to its shut-ins cost.