Competitive WoS arbs pressuring Eastern grades
Commentary summary:
• North Sea premia have not yet followed recovery in Brent spreads, DFLs.
• Forties et al look cheap globally still, and should see premia rise.
• Narrowing in WTI/Brent paper looks slightly overdone looking at the arb perspective (i.e. in Europe), though WTI is still wide open to Asia.
• Tariffs, however, present an opportunity for temporarily more domestic WTI use.
• US runs are already recovering post-TARs, and Asia is buying for May.
• Mars, JS, Tupi all still open to the East. Mars premia very strong on tariff threat.
Flat price struggled through the week, bumped around by headlines and with sentiment in wider markets under pressure.
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