Brent rally pushes EFS past $2/b
Commentary summary:
• Europe appears to “want” US barrels again even as US stocks are relatively low and WTI is priced out of Asia.
• Some signs of an improving physical market in Europe (both light sweet and medium) late last week.
• With a +$2/b EFS most WoS crude is closed to Asia, and that plus higher summer burn, max runs, and likely weaker OEPC exports than anticipated, we still see some chance for Dubai to recover.
Brent spreads are rallying again this morning, even in the absence of much action on flat price.
Immediately delayed tariffs on the EU and Trump’s statements on Putin make for some bullish impetus maybe, but the physical market was showing signs of strengthening on Friday, at least in the Western Hemisphere.
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