23 August 2024: 09:30 BST
Dynamic duo Vitol and Gunvor’s avid purchasing is having a discernible impact on the physical premiums
which have now risen to $1.12/bbl, the highest level of the month. The aggressive bidding has boosted
physical premiums by 25cts ahead of a long London market holiday. Remember, Asian markets will be trading
normally but London will be rejoicing in the remnants of August warmth. Vitol has been sucking in those
Dubai lookalike babies, including Oman, Upper Zakum and Al Shaheen. The average physical premium prior
to date is 79 cents and rising. The dynamic duo obviously bought and converged at lower implied premiums/
Vitol and Gunvor appear to be in control, with further gains in the physical premiums expected as they
continue to bid and lift. Time will tell as the question is, what is Vitol doing with all those cargoes?
In ‘The Officials’, Onyx Capital Advisory publishes outright values, spreads, cracks and boxes for the main energy commodities traded in the marketplace. The published values are determined independently and on a fair market basis by our team of dedicated professionals.
We invite you to read our reports, which will initially be published twice a day, reflecting closing values at 16:30 Singapore time (SGT) and at 16:30 London time (GMT/BST).
For any comments, please reach out to us through the emails provided in the signed documents.
