USGC DPP Market Report: TD25 overvalued and TD22 supported

TD25: The spot freight RBI remains severely overvalued at +$6.68/mt, with November and December RBIs similarly inflated. Spot rates surged 30 WS points over the past week, driving the RBI sharply out of neutral territory. Consequently, WTI barrels into NWE are now uncompetitive, reflected in a +$1.18/bbl RBI — a steep increase from last week and tied for the highest overvaluation in the past six months. USGC Aframax supply is ample, with 18 open vessels (14-day, 14-avg). All indicators for TD25 are bearish, despite enquiry holding relatively steady.

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