In the week ending 11 Nov, the M1 Brent futures contract traded down to $62.84/bbl on 06 Nov before meeting support and rising to $65.29/bbl on 11 Nov. Prices were initially pressured by growing concerns of an oil surplus. However, optimism surrounding an end to the US government shutdown grew as a Senate funding agreement was passed, providing some support to prices. Lukoil’s declaration of force majeure at its West Qurna-2 field in Iraq, alongside tightness in the diesel and gasoline markets, further lent support. RBOB futures prices saw steady strength in the week ending 11 Nov, rising from $14.13/bbl on 04 Nov to $17.05/bbl on 11 Nov. Similarly, the ICE gasoil swap crack rose from $28.16/bbl on 04 Nov to $34.78/bbl on 11 Nov.
This week in Brent and RBOB, money managers are expected to add length and cut their shorts, while producers/merchants are anticipated to increase their overall exposure. In ICE gasoil, both players are anticipated to take the respective opposite stances.
Further detailed information on other categories and contracts can be found in the report.
