FREIGHT: VLCC Rates Highest in Over 2 Years: MEES
VLCC tanker rates have hit their highest in over two years, according to MEES.
- Spot prices for a 270k mt vessel from the Gulf to China have reached over $87k/d (WS98) this week, Kpler data showed.
- That is over double the $43k/d on Sep. 2, and even higher than levels reached during the 12-day Israel-Iran war, MEES added.
- Support comes from the return of more OPEC+ crude to the water, spurring demand into next year.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
GBPUSD TECHS: Corrective Pullback
- RES 4: 1.3753 High High Jul 2
- RES 3: 1.3681 High Jul 4
- RES 2: 1.3636 76.4% retracement of the Jul 1 - Aug1 downleg
- RES 1: 1.3595 High Aug 14
- PRICE: 1.3465 @ 16:12 BST Aug 20
- SUP 1: 1.3461 Low Aug 20
- SUP 2: 1.3449 50-day EMA
- SUP 3: 1.3400 Low Aug 11
- SUP 4: 1.3346 Low Aug 7
The latest pullback in GBPUSD, for now, appears corrective and a bullish condition remains intact. Recent gains resulted in a breach of resistance at 1.3589, the Jul 24 high. This signals scope for a climb towards 1.3636, the 76.4% retracement of the bear leg between Jul 1 and Aug 1. Clearance of this level would strengthen the S/T bull theme. Initial firm support to watch is 1.3449, the 50-day EMA. A clear break of it would signal a possible reversal.
US: FED Reverse Repo Operation
RRP usage rebounds to $34.999B this afternoon from $22.344B yesterday - lowest since April 5, 2021. Total number of counterparties at 29. This week's retreat compares this year's high usage of $460.731B on June 30.
OPTIONS: Put Condors Bought Across Euribor, Bunds
Wednesday's Europe rates/bond options flow included:
- RXU5/RXV5 129.5c spread, bought the Oct for 20.5 in 5k
- RXV5 127.5/126.5/125.5/123p condor vs 130/131.5 cs, bought the Condor for 2 and 3 in 10k
- ERH6 97.9375/97.8125/97.6875/97.5625p condor, bought for half in 7.5k
- 0RX5 98.25/98.375cs, bought for 2 in 4k
- SFIH6 95.50/60/70/80c condor, bought for 1.5 in 3k
