30 April 2025: 16:30 BST
The market is gearing up for war, on the oil pricing battlefield. The Officials heard that the Saudis are preparing for a 1-2 year price war, while other reports suggest they are fed up with carrying responsibility for OPEC cuts.
The May DFL sold off pretty aggressively yesterday to dip under 60c and it kept going today, falling to below 40c just after the window. Today’s North Sea window followed much the same pattern as yesterday’s: Exxon and Gunvor came in to offer Midland again, each with a cargo at May 15-19 and May 28-June 1 at +$1 and +$1.55 over Dated, while BP bid for several Johan Sverdrup cargoes. Eni made an appearance for the first time in a while, offering a May 26-28 Forties cargo at Dated +$0.40. A broader selection up for grabs, but no buyers were tempted forth to take advantage of the menu. With such lacklustre buyside interest, the physical diff dropped again to 12c.
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