26 September 2024: 09:30 BST
Scary times in oil. You have a mega Chinese stimulus, Fed rate cuts, hurricane oil shut ins, Chinese buying for the reserves and… the price tanks! Oil is very macro and is not responding to half measures. The ‘macro guys are dominating the trade,’ said a derivatives trader, noting that Dubai physical was pricing strong, but the flat price was giving way. And way it did, bottoming out at $70.78/bbl before having a temporary bounce to $72.44/bbl. ‘This market wants to test something starting with a six again,’ said another trader. But it was a perplexing time. Chinese stocks soared bringing up the Shanghai index up to 14% since the stimulus, other indexes were up over 10%, and HK’s Hang Seng was also up similarly. But onto more ‘real economy’ type. An iron ore trader said excitedly, ‘the ore has gone up ten percent, and also rebar!’ Some green shoots are there but they are not evident in oil.
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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