OIL: Mideast Crude Premiums to Find Support Amid More Supply Certainty: Sparta
Mideast crude premiums should bottom out soon and may even rise now Eastern refiners have greater certainty about Middle East supplies, according to Sparta Commodities cited by Bloomberg.
- Physical crude spot premiums have “fallen substantially in general,” with tensions cooling. Freight rates, particularly out of the Middle East Gulf, have also dropped.
- The WTI/Brent spread and “broader crude timespreads at the prompt” are seen supported by tightness at WTI.
- WTI is a “flashpoint of global tightness” partly driven by lower imports from Canada following wildfires.
- US domestic differentials such as Magellan East Houston and WTI Midland try to price crude to remain in Cushing.
- EIA data for the week to June 20 showed Cushing stocks fell by 0.46mbbl to remain near the seasonal five-year range low and the lowest since Feb. 7.
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EQUITY TECHS: E-MINI S&P: (M5) Bulls Remain In The Driver’s Seat
- RES 4: 6080.75 High Feb 26
- RES 3: 6057.00 High Mar 3
- RES 2: 6000.00 Round number resistance
- RES 1: 5993.50 High May 20 and the bull trigger
- PRICE: 5943.00 @ 14:34 BST May 29
- SUP 1: 5756.50/5728.00 Low May 23 / 50-day EMA and key support
- SUP 2: 5596.00 Low May 7
- SUP 3: 5455.50 Low Apr 30
- SUP 4: 5355.25 Low Apr 24
A bullish trend condition in S&P E-Minis remains intact and the latest pullback appears to have been a correction. Last Friday’s sell-off resulted in a print below the 20-day EMA, at 5794.26. A key support lies at 5728.00, the 50-day EMA. A clear break of this average is required to highlight a stronger reversal and signal scope for a deeper retracement. Sights are on the bull trigger at 5993.50, the May 20 high.
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SOFR OPTIONS: Vol Buyer
SFRQ5 95.87^, bought for 23 in 2k.
