US Daily Oil Summary: Gulf of Mexico Drilling Auction Postponed

The US has further delayed its auction for offshore drilling rights in the Gulf of Mexico as it awaits the outcome of a legal proceeding, according to Reuters.

• A nascent recovery in truck utilization is supporting resilient US freight diesel demand as rail traffic increases to a 2023 high according to JPMorgan.
• HF Sinclair and PBF Energy have both indicated that they have no immediate desire in bidding for Citigo’s assets, according to comments from executives during Q3 earnings calls. Citigo’s three US refineries and associated assets will be sold under auction to recover debts owed by Venezuela.
• Alberta’s oil production fell in September to the lowest since June amid a fall in synthetic crude due to upgrader maintenance according to Alberta Energy Regulator data.
• USD: The significant rally for major equity benchmarks has continued to weigh on the greenback on Thursday, with the USD index briefly extending its post-FOMC decline to over 1%. The move higher for yields in the US session prompted only a moderate USD recovery, with the DXY consolidating the majority of session losses ahead of the US employment data tomorrow.
• US DATA: Jobless Claims Data Offer Signs Of Reduced Labor Churn. Initial claims were a little stronger than expected in the week to Oct 28 as they increased to a seasonally adjusted 217k (cons 210k) after an upward revised 212k (initial 210k).
• The four-week average ticked up another 2k to 210k but remains close to one of its lowest levels of the year and is still firmly below the 2012 average of 218k.
• Treasury Secretary Janet Yellen, speaking on Indo-Pacific policy at the Asia Society Policy Institute, has outlined "three priorities" that are "shaping [US] economic strategy in the [Indo-Pacific]," which she says will be advanced through, "strategic and intensifying multilateral and bilateral engagements."