03 December 2024: 09:30 GMT
After yesterday’s selloff, Europe lurched out of bed and jumped up at 08:00 GMT. Early European trading saw Brent build back up into the mid-$72 range and Singapore closed today’s session at $72.39/bbl. It doesn’t like being so close to $70 just yet, but flat price should get used to going lower. It’s got to go that way! So, what’s up for oil prices in the remainder of 2024? Well, according to traders, prices are very well supported at the $70 level. There has been a resurgence in some macroeconomic indicators, as US importers look to get ahead of incoming protectionism under Trump. Containers delivered into Long Beach and Los Angeles jumped to near record highs in October at 950k. Looks bullish right? But the benefits of this front loading are already behind us; a cargo ship can take up to 49 days to reach the US after setting sail from China, so there’s little upside potential there. You’ve got to get ahead of the curve to avoid getting whacked with the tariff club. When Trump comes in on the 20th January, it will likely only be downhill from there, even if we think it would be political suicide to whack Canadian oil with tariffs.
In ‘The Officials’, Onyx Capital Advisory publishes outright values, spreads, cracks and boxes for the main energy commodities traded in the marketplace. The published values are determined independently and on a fair market basis by our team of dedicated professionals.
We invite you to read our reports, which will initially be published twice a day, reflecting closing values at 16:30 Singapore time (SGT) and at 16:30 London time (GMT/BST).
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