OIL PRODUCTS: Oil Products Summary At European Close: Diesel Cracks Soften
Sep-17 15:07
Diesel cracks are slightly softer after a higher than expected stock build in today’s EIA data release.
- US ULSD crack down 1.4$/bbl at 34.69$/bbl
- US gasoline crack up 0.1$/bbl at 21.29$/bbl
- US 321 crack down 0.3$/bbl at 25.83$/bbl
- EU Gasoil-Brent down 1$/bbl at 24.77$/bbl
- EU Gasoline-Brent unchanged at 16.12$/bbl
- EIA data showed distillates stocks rose more than expected by 4.05mbbl to extend the recovery since mid-July but still below the previous five-year average. Stocks built with a drop in exports offsetting lower production and a rise in weekly implied demand.
- EIA data showed gasoline stocks unexpectedly fell by 2.35mbbl, to the lowest since November, with a drop in production and imports combined with a rise in weekly implied demand.
- Port of Fujairah oil product stockpiles fell to a record low on Sep. 15, with ship fuel inventories dropping to their lowest level in seven years, Platts reports.
- Chinese independent refineries Qicheng Petrochemical and Qirun Petrochemical have bought crude oil from Brazil and West Africa for their newly acquired plants in eastern Shandong province, sources said to Reuters.
- Russia’s oil refineries processed an average of 4.97m b/d on Sep. 4-10, little changed from the first days of the month, Bloomberg reports citing a source with knowledge of industry data.
- India’s diesel and gasoline sales rose on the year in the first half of September, data from state-run Indian Oil and Bharat Petroleum and Hindustan Petroleum showed cited by Bloomberg.
- Indian state-owned refiner BPCL’s 311k b/d Kochi refinery is currently undergoing scheduled maintenance, Argus reports.
- The 247kb/d TotalEnergies Gonfreville refinery in northern France reported malfunctions at the steam cracker unit, according to a community alert issued on Sep. 17.
- HSFO may gain a stronger role in marine fuel markets as upcoming IMO greenhouse gas regulations make it more cost-competitive than VLSFO or MGO, Argus reports.
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US TSY OPTIONS: Large Sep'25 10Y Call Buy
Aug-18 15:05
- +40,000 TYU5 112.5 calls, 2, total volume over 52,700, open interest at 163,678 coming into the session.
- Sep'25 options expire Friday
FOREX: Greenback Pops Into WMR Fix on Volume Spike, Rising Curve
Aug-18 14:58
- Greenback picking up into the WMR fix, helping trigger fresh daily lows across EUR/USD, GBP/USD and new daily highs for USD/CAD and USD/JPY.
- USD strength being driven partly by the run higher in the US curve - but also a sizeable uptick in EUR futures at 1047ET/1547BST. ~1000 contracts traded inside two minutes for a cash equivalent of ~$150mln. While the last few minutes have seen activity pick up, overall volumes on the day are very low: EUR futures are close to 30% below average for this time of day.
- While the USD's benefiting from the higher US curve, it's the opposite for GBP. Which is slipping despite a further backtrack in BOE rate cut pricing for 2025 (year-end implied rates now ~3.85%, or pricing just 12bps of rate cuts over the next three meetings).
- No specific headlines or newsflow behind the USD rally in recent trade - with low volumes and light liquidity the suspected driver. We mentioned earlier today the preference for markets to adopt a more neutral setting into Jackson Hole on Friday - evident in last week's CFTC data showing the net short trimmed off multi-year lows.
UK DMO UPDATE: Consultation agenda
Aug-18 14:44
The DMO has released the agenda for the consultation to be held Tuesday next week ahead of the release of the Oct-Dec auction calendar (on Friday 29 August at 7:30BST).
- Syndications: A new conventional 15-year gilt in October and a linker (new or existing) in November.
- The DMO has also raised the possibility of dual-tranche syndications (which are not currently held). These are not planned for FQ3, but could be introduced in the future.
- Short auctions (6 auctions): Launch and reopen at least once both a new 3-year gilt and new 5-year gilt.
- Medium auctions (4 auctions): The new 10-year Oct-35 gilt (which will be launched via syndication in the W/C 1 September) to be reopened at least twice in the quarter. The DMO is also welcoming views on a new 7-year gilt.
- Long auctions (2 auctions): Including a reopening of the
- Linker auctions (4 auctions): All existing.
- PGTs (5): 1 short, 1 medium, 1 linker and 2 other conventional (without maturity guidance).
- The next consultation will be held on Monday 24 November, subject to the timing of the Budget.
