DPP Market Report: Weaker TD20 & TD25 and stronger TD3c

TD20: Freight RBI is +$1.81/mt overvalued. Bonny Light is $0.58/bbl overvalued. There are 12 open WAF Suezmaxes in the 14-day window compared to a 90-day average of 7 vessels. The TD20 near-term outlook is bearish. Spot at 160 WS is too high and should narrow the 21-point spread to Dec paper. Dec at 139 though is also overvalued and should weaken 12 points toward 127 WS bringing the RBI back to neutral. Long tonnage and overvalued RBIs signal lower rates into third decade November and Dec paper.
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Michael Ryan, our Freight Commodity Owner at Sparta, brings over a decade of experience with Trafigura in the energy sector managing risk across products and regions before becoming Head of Risk for subsidiary Puma Energy. Michael then joined the Trafigura commercial team trading freight while successfully growing the physical fleet through strategic dealmaking.

Sparta is a live, market intelligence and forecasting platform that enables oil traders, refiners, banks, hedge funds and wholesalers to have access to real-time and global actionable insights to capture market opportunities before others.

To find out how Sparta can allow you to make smarter trading decisions, faster, contact us for a demonstration at sales@spartacommodites.com