OIL PRODUCTS: Oil Products End of Day Summary: Cracks Lose Ground
US gasoline cracks are lower after EIA data showed an unexpected rise in gasoline stocks. Diesel cracks are also under pressure after implied demand fell back towards average levels.
- US gasoline crack down 0.6$/bbl at 27.13$/bbl
- US ULSD crack down 0.4$/bbl at 24.96$/bbl
- EIA Weekly US Petroleum Summary - w/w change week ending May 02: Gasoline stocks +188 vs Exp -1,420, Implied mogas demand -381, Distillate stocks -1,107 vs Exp -389, Implied dist demand -29, Tot product stocks +3,196
- US refiners are expected to have just over 1.2mb/d of capacity offline in the week ending May 9, according to IIR data cited by Reuters.
- Venezuela's 310kb/d Cardon refinery restarted its 88kb/d fluid catalytic cracker, according to Reuters sources on May 6.
- HPCL officials said progress at its 9 MTPA Rajasthan Refinery is ramping up and the construction of the facility is nearing completion on its Q1 results call.
- HPCL’s Vizag refinery reached record output last year following the Vizag Residue Upgradation Project (VMRP) according to the companies Q1 call.
- India and Saudi Arabia are partnering to develop two integrated refinery and petrochemical plants in India, Argus said.
- Eneos Corp restarted two crude distillation units at its Kawasaki refinery near Tokyo on May 4 following an unplanned shutdown, a company spokesperson said, cited by Reuters.
- The Skikda refinery in Algeria is currently undergoing a 25-day period maintenance, Sonatrach said in a statement cited by Bloomberg.
- In-plant crude inventories at Shandong’s independent refineries were down 25k mt in the week to May 7 to 2.437m mt, according to OilChem.
- MNI Commodity Weekly: OPEC+ Keeps Pressure on Oil: Download Full Report Here
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EURGBP TECHS: Clears Key Resistance
- RES 4: 0.8628 1.500 proj of the Mar 3 - 11 - 28 price swing
- RES 3: 0.8604 1.382 proj of the Mar 3 - 11 - 28 price swing
- RES 2: 0.8593 High Aug 14 ‘24
- RES 1: 0.8580 High Apr 7
- PRICE: 0.8571 @ 16:49 BST Apr 7
- SUP 1: 0.8432/0.8380 Low Apr 4 / 20-day EMA
- SUP 2: 0.8316 Low Mar 28 and a key near-term support
- SUP 3: 0.8299 Low Mar 5
- SUP 4: 0.8251 Low Mar 4
EURGBP maintains a bullish tone. The latest rally has resulted in a break of key resistance at 0.8474, the Jan 20 high. Clearance of this hurdle highlights an important technical breach and strengthens a bullish condition. Sights are 0.8593 next, the Aug 14 ‘24 high. On the downside, firm support lies at 0.8380, the 20-day EMA. The contract is overbought, a pullback would allow this condition to unwind.
EURGBP TECHS: Clears Key Resistance
- RES 4: 0.8628 1.500 proj of the Mar 3 - 11 - 28 price swing
- RES 3: 0.8604 1.382 proj of the Mar 3 - 11 - 28 price swing
- RES 2: 0.8593 High Aug 14 ‘24
- RES 1: 0.8580 High Apr 7
- PRICE: 0.8571 @ 16:49 BST Apr 7
- SUP 1: 0.8432/0.8380 Low Apr 4 / 20-day EMA
- SUP 2: 0.8316 Low Mar 28 and a key near-term support
- SUP 3: 0.8299 Low Mar 5
- SUP 4: 0.8251 Low Mar 4
EURGBP maintains a bullish tone. The latest rally has resulted in a break of key resistance at 0.8474, the Jan 20 high. Clearance of this hurdle highlights an important technical breach and strengthens a bullish condition. Sights are 0.8593 next, the Aug 14 ‘24 high. On the downside, firm support lies at 0.8380, the 20-day EMA. The contract is overbought, a pullback would allow this condition to unwind.
BONDS: Gilts Creeping Back Toward Shorts; OATs, BTPs Little Changed (2/2)
For non-German contracts, structural positioning remains flat/short:
- OAT: OAT remains in short structural positioning, having entered that territory after being "flat" for most of February. Last week's trade was indicative of long setting.
- GILT: Gilt structural positioning remains flat, where it has been the last 7 months, but is now as close to "short" as it's been since early January. Last week some some shorts set.
- BTP: BTP has now been flat since late January, though has ticked a little bit closer to "long" territory in the last week or so following some long-setting.
