OIL: Oil End of Day Summary: Crude Higher
WTI is higher on the day although below a peak of $60.74/bbl yesterday after gaining on reports that the US plans to introduce further Russia sanctions if Putin does not agree to a peace deal, alongside a US move to blockade all sanctioned Venezuelan oil.
- WTI JAN 26 up 0.5% at 56.24$/bbl
- Venezuela may have to start to shut-in some oil wells due to low storage capacity as maximum capacity could be reached in about 10 days, Bloomberg said.
- Venezuela’s President Nicolas Maduro ordered his navy to escort ships carrying oil: NYT.
- Chevron is preparing to export 1m bbl of crude from Venezuela, a day after President Trump accused the nation of using oil proceeds to finance drug trafficking and terrorism, Bloomberg reported.
- Reports suggest that the US is considering targeting sanctions on Russia's shadow fleet of oil tankers and traders should the Kremlin reject a peace deal with Ukraine.
- Zelensky told reporters that Ukrainian and US officials will meet Friday and Saturday to continue peace plan talks.
- The EU Council sanctioned another 41 vessels from Russia’s shadow fleet.
- The Russian Urals discount to dated Brent has widened to the largest since early 2022, driven by tougher Western sanctions and falling demand from India, Reuters said.
- Work on the CPC terminal mooring is now likely to be completed on or around Dec. 21, Bloomberg said
- The US Treasury has added individuals, entities and vessels to its Iran-related sanctions list.
- Oil demand in JODI-reporting countries rose by 677 kb/d in October, up 2.4m b/d year-on-year.
- WTI is projected to average $57/bbl in 2026, down from $65/bbl this year: BoA
- The U.S. action against Venezuelan oil if continued will likely cause production in the area to be shut-in: BOK Financial.
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US: FED Reverse Repo Operation
Excess liquidity nearly drained: RRP usage down to $0.905B with 8 counterparties this afternoon from Monday's $3.172B. Compares to last Friday's (Nov 14) $1.559B - lowest level since mid-March 2021; this years highest excess liquidity measure: $460.731B on June 30.
EURGBP TECHS: Trend Needle Points North
- RES 4: 0.8893 2.000 proj of the Sep 15 - 25 - Oct 8 price swing
- RES 3: 0.8875 High Apr 25
- RES 2: 0.8868 61.8% retracement of the 2022 - 2024 bear leg
- RES 1: 0.8865 High Nov 14
- PRICE: 0.8814 @ 16:37 GMT Nov 18
- SUP 1: 0.8781 20-day EMA
- SUP 2: 0.8769 Low Nov 10
- SUP 3: 0.8737 50-day EMA
- SUP 4: 0.8706 Low Oct 24 and a key support
The trend condition in EURGBP remains bullish and the cross is trading closer to its recent trend highs. A fresh cycle high last week confirms a resumption of the uptrend and maintains the price sequence of higher highs and higher lows. Sights are on 0.8868 next, a Fibonacci retracement. On the downside, initial key short-term support to watch lies at 0.8781, the 20-day EMA. A break of the average would highlight the start of a corrective phase.
PIPELINE: Corporate Bond Update: $6B Pfizer 7Pt Launched
- Date $MM Issuer (Priced *, Launch #)
- 11/18 $6B #Pfizer $1B 2Y +30, $500M 2Y SOFR+50, $1B 5Y +52, $1.25B 7Y +65, $1.25B 10Y +75, $500M 30Y +87.5, $500M 40Y +100.
- 11/18 $2.5B Genmab 7NC3 6.375%a, 8NC3 7.375%a
- 11/18 $1.2B #Protective Life $600M +5Y +105, $600M 10Y +12
- 11/18 $1B #Cenovius $500M +5Y +100, $500M +10Y +130
- 11/18 $900M #Spire $450M 30.5NC5.25 6.25%, $450M 30.5NC10.25 6.45%
- 11/18 $800M #Steel Dynamics $650M 3Y +63, $150M 10Y +93
- 11/18 $750M #Vale Overseas +30NC5 6.125%
- 11/18 $600M Eurofima Jan 2029 SOFR+36
- 11/18 $600M #Buenos Aires 7Y 8.125%
- 11/18 $500M #RGA Global Funding 5Y +93
- 11/18 $500M #Pricoa Global Funding 5Y +68
- 11/18 $500M #Global Atlantic Fin 30NC5 7.25%
- 11/18 $Benchmark Sharjah 10.5Y Sukuk +145a
- 11/18 $Benchmark Goldman Sachs Private Equity investor calls
