Biden’s victory to accelerate energy transition in US

Biden’s victory to accelerate energy transition in US

BAKU, Azerbaijan, Nov.9

By Leman Zeynalova – Trend:

Democratic administration in the US will likely accelerate the energy transition, which many states have already been pursuing for some time now, Trend reports with reference to JP Morgan Bank.

“A total of 23 states have greenhouse gas reduction targets with several, including most recently Michigan, setting net-zero goals. The negative impact of these policies on oil demand is much more of a long-term structural shift and will likely be felt beyond the next presidential term. Though, a divided Congress now shelves significant infrastructure spending in the US in the next few years. We have not baked in any US demand boost on the back of infrastructure spending though, viewing the ongoing recovery from COVID-19 related destruction as the primary driver for demand over the next year.

“While most energy market participants braced for a potentially volatile week in the crude market as a result of the US presidential election, quiet calm appears to be the more descriptive phrase for the front month futures contract: price moved within a relatively narrow range— between $39.50/bbl and $41/bbl. Where participants appear to be feeling the repercussions of election’s uncertainty is within the options market with the subdued tone of price overnight likely triggering an unwinding of any defensive strategies put in place prior to the election.

“This fairly uneventful market period for flat price in the near-term can be viewed as somewhat surprising, in fact, we continue to believe the prompt futures crude contract will have moments of significant volatility in price should uncertainty continue to increase regarding timing of a resolution for the election outcome. However, we want to stress our belief that front-month price movement in the near-term as a result of macro risk factors, such as the US dollar, is not strong enough to overcome the boundaries of fundamentals, such as OPEC+ strategy, burgeoning global storage levels, and Covid-19 related demand implications, which are tightly wrapped around crude market price.

“Within the noise of the election, we believe market participants are carefully watching for any signs of deteriorating demand fundamentals. For example, Tuesday’s headlines that OPEC and Russia are studying deeper cuts as one of the options to address weaker oil markets as well as Tuesday afternoon’s surprisingly strong withdrawal estimate by API—that was confirmed on Wednesday by DOE—manifested in some price support at the front of the forward curve in both cases. Thus, we caution conflating any near-term price moves as solely election-based; though we fully acknowledge that the absorption of the election outcome by the market could prove to be volatile for price. We have been quite adamant that supply and demand fundamentals are likely the best harbingers for 2021 price trajectory,” the Bank said.

---

Follow the author on Twitter: @Lyaman_Zeyn

Subscribe to Trend in Google News! Subscribe
U.S. imposes travel ban from eight African countries over Omicron variant
U.S. imposes travel ban from eight African countries over Omicron variant
Novavax developing vaccine that targets new COVID-19 variant
Novavax developing vaccine that targets new COVID-19 variant
Pfizer/BioNTech, Moderna expect data on shot's protection against new COVID-19 variant soon
Pfizer/BioNTech, Moderna expect data on shot's protection against new COVID-19 variant soon
Loading Bars
Latest
Confident that ECO Member States will benefit from Zangazur corridor - President Ilham Aliyev
Azerbaijan achieved favourable investment climate as result of large-scale reforms - President Ilham Aliyev
Finalists in tumbling among men announced at 28th FIG Trampoline Gymnastics World Age Group Competitions in Baku
Australia confirms two cases of Omicron COVID-19 variant
Zangazur Corridor to contribute to economic development of region - Turkish FM
President Ilham Aliyev participating in 15th Summit of Heads of ECO member-states in Turkmenistan (PHOTO)
Azerbaijani Defense Ministry presents weekly review (VIDEO)
Final day of 28th FIG Trampoline Gymnastics World Age Group Competitions starts at National Gymnastics Arena in Baku (PHOTO)
President of Azerbaijan Ilham Aliyev arrives in Turkmenistan for visit (PHOTO)
Azerbaijani, Iranian FMs meet at Economic Cooperation Council's meeting in Ashgabat
Georgia imposes new regulations for citizens from 8 countries
Turkey, Turkmenistan sign deals, strengthen ties in Erdoğan's visit
Indonesia bans arrivals from 8 African countries to curb Omicron variant
Volume of goods loaded/unloaded in Iranian ports up
Azerbaijan’s 10M2021 volume of loans issued to energy, chemistry and natural resources decreases
Kyrgyz president leaves for Turkmenistan for working visit
Kyrgyzstan adds 41 fresh COVID-19 cases
Access to finance remains major challenge for small businesses in Georgia - IFC
847 more COVID-19 cases reported in Kazakhstan
Parliamentary elections begin in Kyrgyzstan
Cooperation with regional countries, Iran’s top priority - İranian president
Spanish police march in Madrid to protest against 'Gag Law' reform
Storm Arwen: Third person dies as gale-force winds hit UK
U.S. imposes travel ban from eight African countries over Omicron variant
Israel to ban entry of foreigners from all countries over Omicron
Saudi Arabia allows entry of all travelers who received one dose of COVID-19 vaccine
Two workers die in accident preparing Spanish stadium for cup game
Iran's Energy Exchange announces products to be on sale on November 28
UK, Germany and Italy detect Omicron coronavirus variant cases
Results of Sochi summit fully reflect position of Azerbaijan - Russian expert
Awarding ceremony third day held as part of 28th FIG Trampoline Gymnastics World Age Group Competitions in Baku (PHOTOS)
Winners in synchronized trampoline jumping at 28th FIG Trampoline Gymnastics World Age Group Competitions in Baku determined
Baku names winners of World Age Group Competitions in jumping on double mini-trampoline for men
28th FIG Trampoline Gymnastics World Age Group Competitions: Russian gymnast takes first place in tumbling
Baku names winners of World Age Group Competitions in jumping on double mini-trampoline for women
Azercell announces contest on social network
Gymnast from Kazakhstan win gold in acrobatic jumping at 28th FIG Trampoline Gymnastics World Age Group Competitions
Best moments of third day of the World Age Group Competitions in Trampoline Gymnastics and Tumbling in Baku (PHOTOS)
World age group competition in Baku - Russian gymnast wins first place in individual trampoline jumping
Russian gymnast wins gold in individual trampoline jumping in Baku
Turkmenistan boosts imports of electrical goods from Turkey
Turkmenistan agrees to participate in Lapis-Lazuli project
Smoking to be banned in taxis in Georgia
Iran’s Bahar Azadi gold coin price rebounds
11,358 people received COVID-19 vaccine in Kyrgyzstan over past day
Prepared hard for the 28th World Competition in Baku - athlete from Denmark
Finalists in synchronized trampoline jumping among men and women announced at 28th FIG World Age Group Competitions in Baku
Finalists in individual trampoline jumping among men announced at 28th FIG World Age Group Competitions in Baku
Azerbaijan expects mutual steps from Armenia towards achieving peace - FM
Azerbaijani, Turkish FMs meet at Economic Cooperation Council's meeting in Ashgabat
Phone conversation held between Presidents of Azerbaijan and Belarus
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,617 more COVID-19 cases, 1,979 recoveries
ECO Council of FMs supports Azerbaijan's proposal to establish Clean Energy Center (PHOTO)
Buy/sell operations at Iran Mercantile Exchange revealed
Finalists in double mini-trampoline jumping among men announced at 28th FIG World Age Group Competitions in Baku
Finalists in acrobatic jumping among men named at 28th FIG World Age Group Competitions in Baku
Azerbaijani gymnast Seljan Mahsudova reaches finals of World Age Group competition
Kazakhstani Astana- Motors to produce Hyundai cars in Uzbekistan
Iran reveals COVID-19 data for November 27
Finalists in acrobatic jumping among women announced at 28th FIG World Age Group Competitions in Baku
Novavax developing vaccine that targets new COVID-19 variant
Eni sells some stakes to Snam
28th FIG Trampoline Gymnastics World Age Group Competitions underway in Baku (PHOTOS)
Azerbaijan reveals financing of pensions, benefits for 9M2021
Turkish company to organize cotton-textile cluster in Uzbekistan
Finalists in double mini-trampoline among women announced at 28th FIG World Age Group Competitions in Baku
Georgia’s imports from Turkmenistan triple
Coach set goal to enter top three in individual trampoline jumping - Russian gymnast
Uzbek National Bank to issue its bonds on Russian Exchange
33,946 new Covid cases registered in Russia in 24 hours
Georgia to replace damaged buildings – Mayor of Tbilisi
Meeting in Sochi - new step towards sustainable peace in South Caucasus - Turkey's presidential administration
Turkey's cargo traffic via its Gulluk port for 9M2021 revealed
GUAM shares reviews of results of Georgia's presidency
Uzbekistan to sell shares of its two banks to Russian banks
EBRD to support green innovation in Uzbekistan
Turkmenistan's On Dogan to scale up production of vegetables, melons
Turkey shares data on cargo shipment via its ports from Greece for 9M2021
Azerbaijan limits import of poultry products from number of countries
Number of flights from Iran’s Shahid Beheshti International Airport soars
Turkey discloses volume of cargo shipment via its ports from Italy for 9M2021
Iran resumes activity of several enterprises in Sistan and Baluchestan Province
Azerbaijan’s Nakhchivan notes increase in agricultural production for 10M2021
Relations between Baku, Moscow experience highest dev’t stage in history of Azerbaijan's independence – experts
Sri Lanka bans travellers from 6 African nations due to Omicron COVID variant
We feel very comfortable in National Gymnastics Arena in Baku - Israeli athletes
Weekly review of key events in Azerbaijan's ICT sector
Weekly review of main events in Azerbaijan's transport sector
Uzbekistan reveals leading banks without state share in terms of volume of deposits
Number of people hospitalized after Listvyazhnaya mine explosion grows to 58
Weekly review of Azerbaijani precious metals market
Georgia reveals top exported goods to China
Performing at National Gymnastics Arena in Baku is unbelievably cool - Kazakh athlete
Iran’s NICICO records increase in sales
Weekly review of Azerbaijani currency market
Azerbaijan notes growth in total liabilities of banks in 10M2021
Several hydrological points to be installed on rivers in Azerbaijan’s liberated territories – ministry
Iran’s Saipa Company increases auto manufacturing
Georgia releases COVID-19 data for November 27
All news