Will Cunliffe
Research Analyst, The Officials
Down goes Dubai!
The Dubai physical premium collapsed to another record low for The Officials, Iran is struggling to find any takers for its oil, the dollar
The Dubai physical premium collapsed to another record low for The Officials, Iran is struggling to find any takers for its oil, the dollar is finally starting to come down and India is trying to balance the books.
Brent is bloodied and bruised. Seriously! It dropped to barely $70 as Europe awoke and got busy, while the prompt spread’s contango kept deepening to below -50c. The front three spreads are all now in contango… The sixties are looming on the horizon – and yet Hormuz traffic is still barely a third of pre-war! This market has gone super floppy! Dubai is collapsing even further, with the physical premium down to a record low by our assessments at -$4.26/bbl. That’s down another $1.50 or so from yesterday. Although prices are super soft, window activity is picking up, rising to 17 trades today. It’s almost convergence time! After two windows, Vitol and Trafi have already traded 19 partials, quite the contrast to June’s barren run.
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