OIL: Russian Oil Shipments Shift to Western Tankers
Apr-11 17:51
The fall in crude prices is allowing Russia’s crude to be carried on tankers owned and insured by western companies, helping to tighten the Atlantic freight market, Bloomberg said.
- The fall in oil has pushed Urals crude well below the $60/b G7 price cap, the cutoff point for access to western services.
- Prices above $60/b require Russia to use a fleet of mostly older vessels owned by companies in jurisdictions outside the reach of western authorities and often with substandard insurance.
- Urals had been pricing around $60/b since end-January, Bloomberg said.
- The share of cargoes shipped by western companies has soared to 43% following the crude price falls. This compares to 30% on average across Q1.
- Russia typically ships 60-70 cargoes of crude per month from its western ports.
- The increase in western operators in the Russian crude trade has tightened the Atlantic freight market, with the rate to ship US crude to Europe up 50% on the month to $4.60/b.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
OPTIONS: Extremely Active Session For Near-Term Euribor Call Structures
Mar-12 17:39
Wednesday's Europe rates/bond options flow included:
- OEJ5 116.5/116/115.5p fly, bought for 9.5 in 5k.
- RXK5 130.50/131.50cs, bought for 13 in 5.5k.
- ERJ5 97.6875/97.62/97.5625p fly, bought for 0.75 in 14.5k Total.
- ERK5 97.50/97.4375, bought for 0.25 in 10k.
- ERM5 97.8125/97.875/97.9375/98.00 call condor, paper pays 0.75 on 5k
- ERM5 97.9375/98.0625 cs, bought for 2.25 in 40k.
- ERM5 97.6878/97.75/97.875c fly, bought for -0.5 in 15k.
- ERM5 97.8125/97.9375/98.0625 call fly, paper pays 1.75 for 8k
- ERM5 97.87/98.00/98.12c fly, sold at 2 in 37k total.
- ERM5 97.87/98.00/98.12/98.25c condor, bought for 2.75 in 8k.
PIPELINE: Corporate Bond Roundup: $2.25B Stellantis, $2.2B Amcor Launched
Mar-12 17:34
- Date $MM Issuer (Priced *, Launch #)
- 03/12 $2.25B #Stellantis $500M 3Y +140, $750M 5Y +170, $1B 10Y +215
- 03/12 $2.2B #Amcor Flexibles NA $725M 3Y +83, $725M 5Y +103, $750M 10Y +125
- 03/12 $1.5B #SoCal Edison $850M 5Y +118, $650M 30Y +160
- 03/12 $Benchmark Canadian Pacific Railway 5Y +75, 10Y +95
- 03/12 $500M #Equitable Holdings WNG 30NC10 6.7%
- 03/12 $Benchmark NetApp Inc 7Y +130, 10Y +140
- 03/12 $1B OMERS Finance 5Y SOFR+69a
- 03/12 $750M PBF Holding 5NC2
- 03/12 $Benchmark AES 7Y +175a
- 03/12 $Benchmark CGI Inc 5Y +100
- Expected Thursday:
- 03/13 $Benchmark World Bank 5Y SOFR+44a
US INFLATION: Core PCE Consensus Upped After CPI To 11-Month High 0.31%
Mar-12 17:27
As anticipated after the CPI release, analysts have upped their expectations for February's core PCE reading to a median consensus of 0.31% M/M per the notes we've seen (vs 0.24% prior to today, and an acceleration from 0.29% prior) for what would be an 11-month high.
- Various factors are likely to bring core PCE in above its CPI equivalent (0.23%), with the downside surprise in core CPI largely due to softer-than-expected airfares and auto insurance - categories that don't feed from CPI into PCE.
- Instead those categories will come from Thursday's PPI report, along with other categories such as portfolio management.
Post-CPI estimates for February core PCE % M/M:
- Goldman: 0.29% (was 0.25% pre-CPI)
- BofA: 0.30-0.32% (was 0.23% pre-CPI)
- JPMorgan: 0.31%
- TD Securities: 0.31%
- Morgan Stanley: 0.32% (was 0.28% pre-CPI)
- Nomura: 0.32% (was 0.28% pre-CPI)
- Wells Fargo: 0.35%
