The re-election of President Trump has brought havoc and hysteria to oil market sentiment. Trump’s predictably unpredictable rhetoric and actions have created significant uncertainty and volatility for financial markets, which has reinforced large intraday swings in Brent futures and spreads. This filters into the Dated Brent market, where the financial meets the physical market. Physical differentials have taken a nosedive in line with weaker Brent spreads, falling to negative levels of -$0.18/bbl for the first time since early January. The herdy trading mentality of the Dated market was showcased once again, with the mighty BP, Equinor, Exxon, Gunvor, and Unipec offering a smorgasbord of cargos. Mercuria was, for the most part, alone on the buy side, taking one (many cargos) for the team.
