Daily Trade Idea: 06/08/2024

Short Sep 0.5 Barge crack

Demand for LSFO for power generation seems lacklustre due to increase in preference for cheaper alternatives such as natural gas alongside Bunkering appetite for VLSFO was heard to be sluggish with the European holiday season hitting consumption of the product. The market is currently positioned short and getting shorter according to Onyx COT data, exerting downward pressure on the contract.