Archives of “Crude” category

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Oil traders book US vessels to store gasoline, ship fuel overseas

  
Analysis, Crude

An overnight piece via Reuters ICYMI, probably not breaking news to anyone keeping track of energy markets.

  • Oil traders are hiring expensive U.S. vessels, normally only used for domestic shipments, to store gasoline or ship fuel overseas, five shipping sources said, in a sign of the energy industry’s desperation for places to park petroleum amid a 30% drop in worldwide demand.
  • Several shippers said they have started to book Jones Act (JA) vessels for foreign voyages or to store refined products. The century-old Jones Act requires that vessels traveling between domestic ports be owned and operated by U.S. crews, and they are generally more expensive than other vessels.
  • “It’s very unusual to use JA tankers for international trips,” one shipping source said.
Here is the link to the Reuters article if you’d like more
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On another oil related item – tomorrow we’ll get the weekly private oil inventory survey. This will likely report a further build up of stocks – but there be a slowing in the builds as some US states begin to reopen.
oil

Oil – US investigating whether traders profited from ‘tips’ on Russia / OPEC talks

  
Analysis, Crude

The Commodity Futures Trading Commission is said to be investigating trades placed to benefit from oil price movement surrounding the OPEC+ talks last month.

Bloomberg report citing two unnamed people “with direct knowledge of the matter.”
CFTC inquiry is focused on whether Russia’s stance with OPEC+ leaked to market participants ahead of time. ‘d be shocked if they hadn’t.
The info is based off these unnamed sources, so bear that in mind:
  • traders being investigated are not Russian government officials
  • but the entities placing the trades are said to employ people ‘with links to the Kremlin’
  • the transactions are in instruments that had expired before the price drop into negative this week
UK FCA (Financial Conduct Authority  – regulator for financial markets in the UK) also investigating.
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Look … this is a rhetorical question, but feel free to take it up in the comments if you wish. Isn’t this sort of behaviour the exact thing that technical analysis is supposed to pick up? Or is technical analysis no longer of any use (check this out)?
oil russia

IEA’s Birol: OPEC+ may want to consider further output cuts

  
Analysis, Crude

IEA chief Fatih Birol is speaking to Bloomberg

  • It may be advisable for OPEC+ to cut as soon as possible
That’s certainly a thought but given how reluctant the Saudis and Russians were to overstep their boundaries with the latest deal, I don’t think we’ll get one any time soon.
And even if we do, it is likely to be a token one that will fall way short of addressing the supply glut in the market right now.
WTI is down by just over 2% on the day now, around $11.30.
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