With Group CEO Greg Newman abroad, Light Ends Direct Trader James Todd steps up to host World of Oil Derivatives for another market update episode.
Since last week, Brent Futures price rallied from sub $83/bbl this week to over $87.50/bbl yesterday. The breakout from its previous range came on the back of a flurry of bullish headlines – including drone attacks on Russian oil infrastructure, draws in both crude and gasoline inventories in the US, and positive Chinese economic data.
Looking to the refinery margin, there was strength across all products, outweighing the rally in the flat price last week, so the refinery margin saw a small increase.
James Brodie weighs in to comment on macro-economic trends. The bank of Japan hiked rates for the first time in seventeen years. US inflation is not coming down as quickly as it is in Europe, and the CPI is still just above 3%. This presents a slight concern for the Fed.
Vincent leads our “Googling Oil” segment, and the team discuss the big news stories of the week, including recent drone attacks on Russian refineries and how they were able rebuild and be up and running in a day.
The trade idea this week is to buy the Q2’24 NWE Jet diff.