Plenty Of Headwinds To Consider

Fresh COVID-19 mitigation measures in Europe dominated weekend news flow, while equity traders also looked to the decline in the probability of a "Blue Wave" outcome (judged by PredictIt markets) as a risk negative. The uptick in the USD added further pressure to crude, leaving WTI & Brent ~$0.60 shy of their respective settlement levels at typing, but off early Asia lows.

• This comes after crude softened on Friday, with a focus on Europe's Covid-19 situation (and knock on for crude demand) already evident then, expectations of a further uptick in Libyan crude supply and news that the Canadian province of Alberta will lift crude production limits ahead of schedule. The lack of fiscal developments in DC also did little for bulls. Partially countering this, Platts sources noted that "many OPEC+ ministers appear increasingly open to keeping the current cuts in place… though no final decision has been made and not all members are convinced." Elsewhere, there was some focus on the next tropical weather offering in/around the Gulf of Mexico, which is expected to develop further in the coming days.