Free Trial
USDCAD TECHS

Remains Vulnerable

AUDUSD TECHS

Trend Needle Points North

US TSYS

Bonds Near Highs, Yield Curves Flatter

EURJPY TECHS

Bearish Outlook

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Tight Supply Keeping Strong Backwardation

OIL

Crude rose 2$/bbl yesterday as tight supplies are weighed against risks that a global slowdown will erode demand.

  • Crude was trading in very light volume due to the US holiday with a weaker US dollar also supporting prices early in the day. Supply disruptions from Libya and Ecuador and a workers strike in Norway are all adding to the uncertain over global production. China also remains a big unknown as renewed outbreaks of Covid could potentially delay their oil demand recovery.
  • Brent SEP 22 down -0.2% at 113.31$/bbl
  • WTI AUG 22 up 1.5% at 110.02$/bbl
  • Gasoil JUL 22 down -1.4% at 1221.5$/mt
  • WTI-Brent down -0.1$/bbl at -6.42$/bbl
  • The tight supply drove prompt time spreads higher yet again with the front Brent spread now above 4$/bbl near to the peaks reached in May and June. The spread reached a high of 4.64$/bbl back in March. The whole curve remains strongly backwardated with longer dated spreads following the moves of the outright futures.
  • Brent SEP 22-OCT 22 up 0.03$/bbl at 4.07$/bbl
  • Brent DEC 22-DEC 23 down -0.08$/bbl at 12.78$/bbl
  • The day saw volatile trading in the refined product crack spreads with diesel and gasoline both ending the day down from the previous close. Signs that the high fuel pump process are now impacting demand have brought the spreads down from peak levels seen in early to mid June.
  • US gasoline crack up 1.8$/bbl at 44.92$/bbl
  • US ULSD crack up 0.8$/bbl at 55.52$/bbl
  • Gasoline-Brent up 1.9$/bbl at 35.58$/bbl
  • Gasoil-Brent down -0.7$/bbl at 40.07$/bbl
250 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Crude rose 2$/bbl yesterday as tight supplies are weighed against risks that a global slowdown will erode demand.

  • Crude was trading in very light volume due to the US holiday with a weaker US dollar also supporting prices early in the day. Supply disruptions from Libya and Ecuador and a workers strike in Norway are all adding to the uncertain over global production. China also remains a big unknown as renewed outbreaks of Covid could potentially delay their oil demand recovery.
  • Brent SEP 22 down -0.2% at 113.31$/bbl
  • WTI AUG 22 up 1.5% at 110.02$/bbl
  • Gasoil JUL 22 down -1.4% at 1221.5$/mt
  • WTI-Brent down -0.1$/bbl at -6.42$/bbl
  • The tight supply drove prompt time spreads higher yet again with the front Brent spread now above 4$/bbl near to the peaks reached in May and June. The spread reached a high of 4.64$/bbl back in March. The whole curve remains strongly backwardated with longer dated spreads following the moves of the outright futures.
  • Brent SEP 22-OCT 22 up 0.03$/bbl at 4.07$/bbl
  • Brent DEC 22-DEC 23 down -0.08$/bbl at 12.78$/bbl
  • The day saw volatile trading in the refined product crack spreads with diesel and gasoline both ending the day down from the previous close. Signs that the high fuel pump process are now impacting demand have brought the spreads down from peak levels seen in early to mid June.
  • US gasoline crack up 1.8$/bbl at 44.92$/bbl
  • US ULSD crack up 0.8$/bbl at 55.52$/bbl
  • Gasoline-Brent up 1.9$/bbl at 35.58$/bbl
  • Gasoil-Brent down -0.7$/bbl at 40.07$/bbl