In the week ending 02 Sep, the M1 (Nov’25) Brent futures contract strengthened up to $69.50/bbl from the $67/bbl level. Prices edged higher as geopolitical risks came back into focus, where Ukraine continues to ramp up attacks on Russian oil infrastructure. Meanwhile, India continues to rebut US pressure to stop purchases of Russian crude. On the products side, gasoil and gasoline cracks strengthened amid news of Shell’s Pernis refinery going offline, as well as potential refinery strikes in France.
We anticipate money managers to add long positions and remove shorts in Brent futures. In contrast, physical players are expected to remove positions. Meanwhile, given the fairly lacklustre price action until 2 Sep, we expect money managers to reduce their net length in gasoil and RBOB futures.
Further detailed information on other categories and contracts can be found in the report.
