This week Research Analyst Mita Chaturvedi brings you trades in Asian High Sulfur Fuel Oil and Northwestern European propane.
Firstly, we take a short-positioned view of Singapore 380 fuel oil spreads. Singapore’s commercial stockpiles of heavy distillates have increased 1.6% w/w, a reversal from last week’s draw. In addition, Onyx’s COT data highlights a short-positioned market in the 380 contract up to October, with Chinese arbers selling prompt 380 flat price in 08 July Singapore window.
Our second trade details a bearish view of Northwestern Europe propane. After a month-long rally, we now see weakness in the prompt and anticipate this to filter into spreads. Despite continuing to see higher levels of inland demand, pronap buying now appears to have simmered off. In addition, due to the combination of abysmal macroeconomic data stemming out of Europe alongside mild weather, we anticipate rising bearish tides for the NWE propane complex.
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