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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 crude premium to Dubai has rallied sharply this month, after a steep decline since last November. The recent recovery has come as Europe’s crude market showed signs of rapid tightening as refiners push to produce more diesel and with rising US prices.
- The Brent-Dubai EFS jumped to a high of $2.60-$2.70 a barrel, compared with an average of 90 cents in the first half of September, according to data from PVM Oil Associates.
- The spread has been in focus since output cuts by Saudi Arabia and Russia have restricted availability of medium sour crude, such as the Dubai benchmark. Dubai crude even traded at a premium to Brent, despite yielding lower quality fuels.
- The EFS can help gauge the relative strength of light sweet crudes against heavier sour crude as well as reflecting market sentiment in Asia compared with the rest of the world.
- Trading volumes of the spread soared to a record this week as many market participants were stopped out of positions on Monday and Tuesday according to Bloomberg sources.
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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