Dated v Brent:
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Edge Updates

Dated Brent Report – Brent Synchronisation

It was quite the turnaround in Brent this week. Markets did a quick 180 as Middle East tensions de-escalated following Iran's telegraphed attack at a US military base in Qatar, in retaliation for American strikes against its nuclear sites. The geopolitical risk premium popped like a balloon. Bullish momentum was already waning before that, given the market's muted reaction on Monday's open, alongside the presence of Eni and Shell in the physical window, selling Forties. So synchronised were the directions of Brent futures and Dated. The futures rally on 13 June magnified the squeeze on deliverable supplies in Cushing, tightening the market and buoying Total's bids in the North Sea physical. DFLs were sent to the stratosphere, with Jul'25 touching $2/bbl. But as the old adage goes, what goes up must come down. Since the geopolitical risk deflation on 23 June, Brent spreads and DFLs are back to square one, before the geopolitical rally. The forward curve is implying weaker, especially the prompt week of 30-04 July. Glencore joined in on the selling party on 24 June, offering Midland, while BP put a Midland cargo into chains, the first of the month. We expect this trend to continue, but the fate of the prompt rolls will depend on how much the physical weakens, forming a basis for our dual trade idea. The front (July rolls) are slightly oversold, while the back (August rolls) is more overbought. Even at lower levels, there is a lack of buying, apart from refiner bids. As Dated weakens, it may be more difficult to fix arbs from the US to Europe, especially amid higher freight rates. Demand outlets would need to come from Chinese players lifting Forties, which is currently setting the curve. Stronger refinery margins may provide renewed support, especially as we've observed hedge selling flows of cracks with the refinery margins forward curve shifting noticeably higher. However, the market is more risk-off, given the elevated, headline-driven volatility recently. Despite our cautiously bearish views, renewed geopolitical headlines could see another upside breakout and volatility spike. Open interest is above average in Jun'25 contracts, but is trending in line with the 5-year average in Jul'25, underscoring the relatively subdued interest by the market. The question now becomes, how low does Dated Brent go? Prices have retraced below pre-event rally levels, but remain high on a notional basis. There is room to go longer, but are we approaching a consolidation?

Dated Brent Report – I Feel It Fading

Well, the bull run did happen, and it was the perfect storm. Peak summer demand. Backwardated prompt spreads. Refineries are back from maintenance. Gold rush. The Dated structure saw a good rally with Total bidding the physical, and the June and July DFLs surpassed $1/bbl, and the bulls were rewarded for their patience, with the recent run likely funding their summer holidays. The rally was well telegraphed, but we do not think the rally has a further leg up, and hold a cautiously bearish view in the short term as the bulls fade out. The 16-20 Jun week is implied at nearly $1/bbl in the physical, but the bulls are in no rush, with the market seemingly happy with the $0.80/bbl level in the physical differential. Despite continued bids from Total and friends, we see this as an attempt to support the physical, rather than to push it higher. Whilst strong buying in the paper was seen on 6 June, it was not by the players with the ability to move the physical. With prompt weeks implying higher than the physical, rolls could roll down and see selling into pricing.

Upcoming events

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European Window: Brent Softens below $68/bbl

2h ago
This afternoon, the front-month Brent futures contract was initially rangebound between $68 and $68.40/bbl but softened further to $67.25/bbl at 16:40 BST. Prices found more support at this level and have since risen to $67.65/bbl at the time of writing (17:45 BST).

COT Deep Dive – Brent/Dubai

3h ago
In this publication, we leverage Onyx's proprietary Commitment of Traders data in order to identify changes in swap Open Interest and Positioning against Onyx with a view, in conjunction with long/short entry price levels and volatility analysis to identify potential continuation or reversal trends. In this edition, we take a look at the Jul'25 Brent/Dubai

COT Deep Dive – EBOB Crack

3h ago
In this publication, we leverage Onyx's proprietary Commitment of Traders data in order to identify changes in swap Open Interest and Positioning against Onyx with a view, in conjunction with long/short entry price levels and volatility analysis to identify potential continuation or reversal trends. In this edition, we take a look at the Aug'25 EBOB crack.

Trader Meeting Notes: No más!

2d ago
The world had its eyes glued to the price of Brent, and bam, just like that, the geopolitical risk premium is gone. There were vast escalations to be sure, including direct US involvement, but add a bit of nuance and you realise the sequence of events was almost telegraphed, much like the 2024 Iran-Israel conflict, or Operation Martyr Soleimani from 2020. Approaching $80/bbl, the bullish momentum in Brent was already waning, and the market barely blinked following the US's strikes on Iranian nuclear sites. Once Iran retaliated by attacking an American air base in Qatar, the market quickly sold into ...

European Window: Brent Softens to $68.45/bbl

2d ago
The Aug’25 Brent futures contract rallied all afternoon to $69.01/bbl at 16:28 BST but have since softened to $68.45/bbl at 17:30 BST (time of writing). In the news, Sierra Leone will decide on launching its next offshore oil and gas licensing a senior official said on Jun 26. The six-week survey aims to de-risk exploration and attract interest for a possible licensing launch in October. Sierra Leone estimates it holds 30 B barrels of recoverable offshore resources. Director General Foday Mansaray noted that major firms like Shell, Petrobras, Hess, and Murphy Oil have recently purchased exploration data. In other news, ...

European Window: Brent Rallies to $68.74/bbl

3d ago
The Aug’25 Brent futures contract initially fell to $67.33/bbl before rallying up to $68.74/bbl at 17:31 BST (time of writing). In the news, Shell has entered early-stage discussions to acquire rival BP, according to a Wall Street Journal report citing sources familiar with the matter. The talks are said to be active, with BP carefully weighing Shell’s approach. No deal terms have been disclosed, and there is no certainty that the negotiations will result in a merger. In other news, Saudi Arabia’s oil export revenues dropped 21.2% yy/y in April to $16.5 B due to falling oil prices amid oversupply ...

COT Report: Back To Our Regularly Scheduled Programming

3d ago
See all the updates across the barrel in this week’s Onyx Commitment of Traders report, as well as six contracts to watch. Click on the relevant button below to access your COT report.

Dated Brent Report – Brent Synchronisation

4d ago
It was quite the turnaround in Brent this week. Markets did a quick 180 as Middle East tensions de-escalated following Iran's telegraphed attack at a US military base in Qatar, in retaliation for American strikes against its nuclear sites. The geopolitical risk premium popped like a balloon. Bullish momentum was already waning before that, given the market's muted reaction on Monday's open, alongside the presence of Eni and Shell in the physical window, selling Forties. So synchronised were the directions of Brent futures and Dated. The futures rally on 13 June magnified the squeeze on deliverable supplies in Cushing, tightening ...

Events

Jun 30, 2025
18:30
Aug25 Brent Expiry
in 3d
Jul 2, 2025
08:00
Fujairah Inventories
in 5d
21:30
API Stats Release
in 6d
Jul 3, 2025
15:15
ARA Product Inventories
in 6d
Jul 4, 2025
04:00
CME Holiday
in 7d
Jul 8, 2025
17:00
EIA STEO
in 11d
Jul 9, 2025
08:00
Fujairah Inventories
in 12d
21:30
API Stats Release
in 13d
API Stats Release
in 13d
Jul 10, 2025
11:00
Jul25 ICE Gasoil Expiry
in 13d
15:15
ARA Product Inventories
in 13d
Jul 15, 2025
13:00
OPEC OMR
in 18d
OPEC OMR
in 18d
Jul 16, 2025
08:00
Fujairah Inventories
in 19d
21:30
API Stats Release
in 20d
API Stats Release
in 20d
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