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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
Aggregate open interest in oil markets continues to trend higher with increasing market hedging activity as Brent positions pick back up after a slight dip at the start of the Feb.
- Nymex WTI aggregate open interest is up to 1.808m contracts from 1.4m in December. ICE Brent open interest is back to the highest in six weeks at 2.167m and ICE Gasoil is up from 0.45m in November to 0.543m today.
- Petronas and Hess have hedged against downside exposures as another sign that volumes are returning, and markets are stabilizing. Increasing hedging activity will especially support the low liquidity on longer dated futures contracts. High uncertainty and volatility in the last two years led to a significant fall in liquidity.
- Hess has covered 75kbpd at an average price of around 70$/bbl and at a cost of $120m. This compares to spending $300m last year to unwind previous hedges. They plan to increase hedges up to 2022 levels of about 150kbpd according to an earnings call on 25 Jan.
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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