Spreads carrying the oil complex

Crude prices corrected in the early morning, likely due to spillover effects of an Asian equity selloff, amid concerns over the Chinese housing market. Indeed, the dollar index, tracking a basket of currencies against the dollar, rose markedly on late Friday and remains elevated compared to previous months. For the crude markets, two factors are indicating that prices will remain supported, time spreads continued to climb, at 78 cents at the prompt, boosted by better sentiment, as long exposure from managed money increased by 20k. Furthermore, end-of-year gasoil cracks continue to be bid, with ICE gasoil cracks now at 9.3 $/b for the November delivery, which will increase east-west flows towards Europe. Better demand in Asia, boosted by Chinese demand from independent refiners, is boosting physical crude markets with Russian ESPO and Sokol grades at yearly highs against the Dubai benchmark. 

EnergyScan - Oil market news

The Fed meeting on Wednesday will likely bring volatility across risky asset classes, as the much talked about Fed tapering will likely be discussed. Sharp downward moves in the treasury yields and equity markets could have an adverse impact on crude markets.

Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

April 20, 2022

Demand concerns drag crude prices down

Crude oil prices slumped on Tuesday, pressured by the downward revision in the IMF global growth forecast (see macro comment) which fueled concerns over energy demand prospects…
June 1, 2021

European prices rebounded

In a rather quiet trading session as the UK market was closed, continental Europe gas prices rebounded yesterday as the bearish impact of the rise…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet?  Sign up here!