Americas Daily Oil Summary: Colonial Pipeline Booked Up amid Supply Glut

A segment of the Colonial Pipeline which is rarely full is booked for months amid a supply glut on the US Gulf Coast according to Bloomberg.

• Shippers are paying a premium to move gasoline, diesel, and jet fuel to the New York Harbor area to help ease the excess supplies.
• Venezuela has given oil producers in Guyana 90 days to cease operations in the disputed Essequibo province and its waters, according to Argus.
• In response to Venezuela’s bellicose rhetoric vis a vis Guyana, US Southern Command has confirmed that in collaboration with the Guyana Defence Force, it will conduct flight operations within Guyana on 7 Dec.
• Pemex is still reviewing the installations of its new Olmeca Refinery in order to plan its start date, according to Reforma, despite earlier assurances production would begin in December.
• USD: In a day dominated by the significant JPY strength in currency markets, the greenback traded on the backfoot. Some softer US data assisted the USD weakness, which has prompted the DXY to unwind the majority of the week’s climb, declining around 0.65% on the session.
• Initial US jobless claims come in exactly as expected at 220k (220k consensus, 219k prior revised from 218k). Continuing claims 1861k (1910k consensus, prior 1925k revised from 1927k).
• The Atlanta Fed GDPNow tracker for Q4 reversed yesterday’s minor increase, now seen back at 1.2% for the joint lowest seen in the Q4 vintage.