Will Cunliffe
Research Analyst, The Officials
What goes up must come down
Prices have fallen as quick and as hard as they rose! The US and Iran continue to exchange blows whilst the Houthis try their hand at diplom
Prices have fallen as quick and as hard as they rose! The US and Iran continue to exchange blows whilst the Houthis try their hand at diplomacy and compromise. Afra/Suezmax rates could be on the rise and Europe is in another precarious jet fuel situation.
The morning’s price dump continued into the afternoon’s close, Sep Brent hit $95.60/bbl at the close, sinking $5.35/bbl lower. The Brent prompt spread followed suit as it came down to the $5/bbl mark. The CFD curve also got battered across the board, W3 and W4 both fell over $2.50/bbl! That didn't stop the Dec26 $400 calls, a trading source told us there were calls at 8c, 10c and 11c on more than 5,000 lots. After the chaos in the North Sea window yesterday it returned to its sleepy self today. Exxon was still ever-present bidding on two Forties cargoes, one for 21-23 Aug at Dated +$2.9 and one for 24-26 Aug at Dated +$3.25. Both bids were withdrawn before the close. The only other bid of the window was Equinor for an 8-10 Aug Johan Sverdrup at Dated +$6. As such the physical differential just rolled up the curve to close at $2.43/bbl.
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