Will Cunliffe
Research Analyst, The Officials
The calm after the storm?
Markets simmered down today and the number of vessels in the Strait have plummeted.
Markets simmered down today, the number of vessels in the Strait have plummeted, Offshore Norway is expecting some serious production losses, European gas production is looking rather bleak and Ukraine have put Russia under the pump.
The market seriously quietened down today. Traders rushed to protect themselves from the sudden reignition yesterday but calmed significantly today. Trading sources commented on a much calmer day, though gasoline remained “volatile” this morning. That was true in crude, as Brent declined through the European afternoon, dropping towards $76.50 shortly after the window. The structure has also softened, with the prompt spread retreating to 36c by the close. The curve remains backwardated throughout, however. Except the July CFDs, after the charge yesterday, they have since lost momentum, as the final July contract dropped into negativity again. Likewise, the Aug DFL stepped back from yesterday’s rally to 38c by the close.
The Officials publish outright values, spreads, cracks and boxes for the main energy commodities traded in the marketplace. The published values are determined independently and on a fair market basis by our team of dedicated professionals.
We invite you to read our reports, which are published twice a day, reflecting closing values at 16:30 Singapore time (SGT) and at 16:30 London time (GMT/BST). For any comments, please reach out to us through the emails provided in the signed documents.