Crude spreads rocketing higher with potentially more to come
Commentary summary:
• Another hike on paper from OPEC+ was largely priced in, market knows that actual exports will be a different story for now.
• US commercial oil stocks (crude and products) returned to draw mode.
• WTI/Brent
• Threat of Libya force majeure could well upend the light sweet market once again.
Spreads are enjoying a bumper week and saw massive gains through May.
The market may appreciate strong refining margins, summer crude burn, the difference between official OPEC supply numbers and actual/exports. Now the threat of force majeure in Libya could shave off a chunk of supply for weeks or even months.
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