Fundamentals still constructive for late Q2
Commentary summary:
• WoS light sweet and sours closed to the East
• Asian buying cycle got off to a very mild start, but strong margins and the end of maintenance should still prove supportive.
• WTI is uncompetitive into both key export markets Europe and Asia.
It was a decent week for those long crude spreads in the end, helped by broader market enthusiasm on tariff pauses etc. We still see fundamentals as constructive going forward but the risk/reward for being long spreads could be relatively poor beyond +60c/b, at least for the time being.
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