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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
A volatile tanker market is making physical traders increasingly cautious about buying cargoes according to Bloomberg.
- US crude deliveries to Europe have seen daily tanker earnings swing between $21,000 and $88,000 in the last month. US deliveries to China halved from March to May before rebounding almost 40% in the past few weeks.
- Freight has historically represented about 4% of the cost of a barrel for large, long-distance deliveries but has increased to as much as 9% of a barrel in recent months.
- Refiners are wary of buying cargoes unless they have certainty over shipping rates at a level that will make the overall trade profitable.
- Some buyers are focusing on closer supplies because the cost of freight makes up a smaller proportion of the overall cost.
- Aframax tanker rates from the US to Europe have soared from near 6$/bbl to over 10$/bbl this month according to at Kpler after WTI Midland crude was included in the Dated Brent benchmark.
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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