Crude contends with a growing WoS glut
Commentary summary:
• WAF clearly reflecting some combination of closed arbs East, the general high supply picture, or a temporary cooling in Eastern (Chinese) buying on various reasons.
• WTI/Brent has widened to -$4.30 even with TD25 fairly stable w-o-w, reflecting a new price battle in Asia.
• I am still short Brent spreads for the time being, but wary of headline risk as ever this year.
Trade tensions did for flat price on Friday, but spreads stayed rangebound which is actually a little odd given the physical market seems to be on a cliff edge. There is still risk of a reversal in trade tensions between US and China too.
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