Oil commentary - 2 November 2020

Morning all and I hope everyone had a good weekend. In fact, I hope everyone in England had the best weekend for a long time because you'll be eating tins of beans watching "The Never-Ending Story" for the next few weekends. Sorry guys. Brent is trading this morning down 1.17 at $36.77 and WTi is trading at $34.49 down 1.31. OK, where do I begin? US presidential election? UK and other EU countries going back into lockdown? Brexit? Libya oil production returning? US oil production back to 11.1mn bbls per day? You'd be wrong on all of them. Arsenal won for the first time at Old Trafford in 14 years yesterday. Bosh. And don't say "Yeah but Man Utd aren't that good anymore" because I don't care, let me enjoy it, OK? I suppose we should talk about oil, so let's give it a whirl, shall we? All the above questions are what the market is facing itself with and all of them are rhetorical. The problem is that the market has no choice but to address the questions and act accordingly. Like when you promised you'd be home before midnight but woke everyone up by stepping on the cat at 330 in the morning. Rumbled. I think though that if we put all the questions in to one big question it boils down to the fact that demand, whatever way you look at it, is going to take yet another hit, and what does this mean for prices? Demand had barely recovered from lockdowns in April. I think that most of the demand hit owing to lockdowns had already been priced into the market, perhaps we have another few dollars to go but I certainly don't see negative prices on the horizon again.  Moving on to the UK; It puzzles me how Boris can say "We must act now!" but then actually act on Thursday. So basically, UK government rules are, "Wash your hands, social distance, protect the NHS and go out on a five-day bender to get it out of your system". Thanks BoJo. What else is going on? Well, only two days before we find out who the next President will be. Joe the plumber or Don the plumb. Excited? Didn't think so. Keep safe and have a good weekend.