From paper weakness to physical recovery, but how supported is the market now?

Commentary summary:

Nap NWE fell into contango in the prompt and weakened along the curve. The market has weakened on paper, especially in Europe where the previous rebound had outpaced MOPJ strength.

However, the physical market pointed in the opposite direction. While it remained flat in Asia (around +5 vs MOPJ for OSN cargoes arriving in Chiba in 2H August), premiums in Europe have rebounded, moving out of negative territory for the first time in two weeks.

Jorge Molinero is a Commodity Owner at Sparta. Starting his career as a financial analyst with BBVA, Jorge quickly transitioned to market intelligence within the energy sector, spending 4 years as a naphtha analyst with Repsol before joining Sparta in early 2023.

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