Short Jul/Aug 3.5 spreads Demand in Europe is still tepid alongside ample stockpiles, as we get closer to summer cooling season, demand shall pick up and inventories should fall. Alongside this, Jul/Aug 3.5 Barges is trading high in the overbought
The Aug Brent futures flat price saw a fairly rangebound afternoon, generally trading in a narrow range between $77.80/bbl and $78.10/bbl.
The LST/FEI saw further pressure over the past two weeks where, after a brief window of strength at the end of May, the Jul contract fell to $242/mt despite observed buying, likely from importers jumping to hedge at these low levels. The weakness perhaps came from LST selling and heavy buying in FEI at the same time.
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.
The Aug Brent Futures flat price has had a mixed morning, initially lingering around $77.50/bbl until 08:15 BST and then ticking up to $77.85/bbl at 09:05 BST. Following this, it fell to $77.20/bbl at 10:10 BST, then rose to $77.70/bbl by 10:50 BST, before falling to $77.40/bbl handles, where it sits as of 11:10 BST (time of writing).
Asian low sulphur fuel oil market structure has weakened over the last couple of days of June, with cash differential for the marine fuel grade dropped to a five-week low amid competitive offers and weaker deals for June-loading physical cargoes. There is persistent lacklustre bunker demand in Singapore, which is expected to see additional supplies coming from Europe in the coming weeks.
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.
Following a period of extraordinary weakness in crude, with Brent and Dubai both falling over $6.50/bbl between May 29 and Jun 03, there has been no shortage of interesting price action.
The Dated market has continued to be inundated with weakness. The physical diff has been stable, yet very weak although it inched up to around -75c on Jun 3 from lows of almost -90c on May 21.
The August Brent futures contract had a relatively quiet afternoon, trading in a tight range of $77.1/bbl and $76.8/bbl. It has since seen some upside support, trading up to $77.5/bbl as at 17:20 BST (time of writing) yet it seems hesitant to make any major moves either way.
