EBOB is Dead? S5 | Ep 41

World of Oil Derivatives

In the latest developments in the global oil market, bearish sentiment has taken hold as OPEC cuts clash with the surge in non-OPEC production (notably from the United States and Guyana). The market is treading cautiously, adopting a risk-off stance as it awaits crucial macroeconomic headlines. Investors are on edge in anticipation of the CPI report on Tuesday and the Federal Reserve meeting scheduled for Wednesday.

Brent crude has found stability, settling around the mid-70s, a level deemed comfortable by industry observers. But a glimmer of positivity emerged as a bullish non-farm payroll result put a temporary halt to the downward spiral of crude prices.

As for changes in the refinery margin, W-O-W decrease for the first time in weeks and weakness in products is finally overtaking the weakness in Dated as the products are finally driving the margins.

The biggest loser is gasoline now as RBBR hasn’t been strong, and data revealed today shows Euro stocks up in Nov 1mbbls and the US have seen 3 weeks of increasing builds US gasoline imports from Europe plunged in the first week of December to the lowest in more than three years.

Vincent brings an interesting trade idea this week. He suggests going long in the Jan/Feb EBOB spread. To catch the full Trade Idea, click here: https://youtu.be/2P-_yGY4BDU

Links below to Greg, Vincent and Martha’s LinkedIn pages:
Greg Newman: https://www.linkedin.com/in/oilderivatives/

Vincent Wu: https://www.linkedin.com/in/vincent-wu-099816125/

Martha Dowding: https://www.linkedin.com/in/martha-dowding-ab84801a6/