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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 oil futures market may have priced in a war premium in recent weeks, but the fall today is more reflective of the sell-off observed in the physical market.
- Physical sweet crude barrels are under pressure - in part because of higher gasoline yields at a point of oversupply in most major markets. Higher runs to produce diesel ahead of the northern hemisphere winter will likely add to that oversupply.
- Vortexa figures earlier showed global gasoline exports ~200kbd above the seven-year range.
- Offers for WTI into Europe have fallen by almost $2/bbl in a little more than a week, reaching the lowest in several months according to Bloomberg.
- Bloomberg has also reported physical price weakness for barrels similar to WTI from Nigeria to the Middle East.
- Higher interest rates have stoked fears of sluggish oil demand into next year, suggestive by weaker underlying refining margins.
- Energy Aspects has referred to WTI domestic demand as being on the soft side (US refinery maintenance is strong at present) while it said European markets were already saturated with WTI.
- The spread between Brent’s two nearest contracts fell below $1/bbl for the first time in more than a month on Tuesday according to Bloomberg.
- Oil futures appear more reflective of the sell-off in physical markets Thursday, losing the most recent premium priced in on Israel ground offensive updates by Netanyahu.
- Brent DEC 23 down -2.3% at 88.1$/bbl
- WTI DEC 23 down -2.7% at 83.08$/bbl
source: General Index via 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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