In the week ending 16 Dec, the M1 Brent futures contract fell from $62.48/bbl on 09 Dec to $58.86/bbl by the week’s close; prices initially began to slip amid ongoing Russia-Ukraine peace talks. Despite a brief rise in prices on 09 Dec, partly due to the US seizing a tanker off the Venezuelan coast, weak Chinese economic data and renewed concerns of an oversupplied oil market pushed prices below the $60/bbl handle.
The M1 RBOB swap crack extended its previous losses this week, falling from $13.82/bbl on 09 Dec to $12.18/bbl on 16 Dec. The M1 ICE gasoil crack similarly saw weakness as it declined from $25.43/bbl on 09 Dec to $22.58/bbl by the week’s close.
This week, across all three contracts, money managers are expected to trim length while adding to shorts. Meanwhile, producers/merchants are anticipated to be risk-off across the board.
Further detailed information on other categories and contracts can be found in the report.
