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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
The Brent/Dubai EFS spread has this month narrowed to the lowest since 2020 due to OPEC+ voluntary production cuts and higher US availability pushing down the Northwest Europe market. The July Brent-Dubai swap fell to -10c/bbl according to Bloomberg Fair Value data.
- Concerns for the impact of further central bank interest rate hikes amid persistent inflation could also dampen growth and fuel demand in the US and Europe.
- Expectations of tighter supply of Middle Eastern crude due to the voluntary production cuts from Saudi Arabia in July and potentially beyond are adding upside pressure to Dubai crude compared to Brent. Saudi Arabia is likely to set the August OSPs next week and high prices could encourage further Asian demand for US, European and West African crude.
- Asia's demand for sweet crude priced off Brent produced in the Atlantic Basin and Brazil has increased with the grades more attractive than some Middle Eastern grades for Asian refiners. The recent uptick in supertanker freight rates could raise costs for such shipments.
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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