We have two trade ideas today:
Long Sep/Oct 3.5 Barges
We have observed 3 consecutive days of strong physical windows and barged being better bid, trading from $6.75/mt up to $10/mt. We believe that barges will finish the week strong, trading up towards recent highs of $11.25/mt.
Short Sep 92 E/W
The idea to short the Sep 92 EW is based on the recent rally influenced by weakness in European markets and competitive Eastern barrels in Western outlets due to a drop in Eastern gasoline prices. The reduced EBOB spread has improved arb opportunities from Europe to the West, WAF, Latin America supported by lower blending costs and favourable freight rates.
