BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry



« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa


BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News



WTI-Brent spread highly volatile and large drops in equities market

By A/S Global Risk Management.



Michael Poulson, Oil Risk Manager at A/S Global Risk Management. Image credit: A/S Global Risk Management


Updated on 26 Jun 2018 08:27 GMT

Lately, the difference between the two reference crudes of the world, Brent and WTI, has had a volatile time. Two weeks ago, the difference between them was more than $11, and yesterday it opened with a difference of $4.49. It is rarely seen that the difference - also referred to as the spread - is this volatile, and the explanation is of course to be found in the Brent and WTI crude oils.

Saudi Arabia pushed through an agreement in OPEC+ to increase crude output by 1 mbpd, and, furthermore, stated that it could offset any shock to production as it has a spare capacity of 2 mbpd. This is bearish for Brent and has likely weighted on the crude since it was in the upper 70s.

The U.S. crude oil hub in Cushing, Oklahoma, receives 360 kbpd of synthetic crude from a facility in Canada. Currently, that facility is down, meaning that those 360 kbpd cannot reach Cushing. The outage is expected to last until the end of July. This is bullish for WTI and therefore the spread has narrowed quickly during the last week. Brent, however, went north yesterday - concluding in the spread widening and currently being about $6.55.

Looking to the financials. Yesterday, the equities market took a huge step southward likely as trade wars and politics have been increasing risk lately. Specifically, China and the European Union vowed to oppose protectionism and have agreed to defend the multilateral trading system as the trade war between the United States and China tightens. The U.S. is planning to impose tariffs on $34 billion of Chinese imports from July 6, and President Trump has further threatened to impose levies on another $200 billion of Chinese goods. This could potentially cut half a percentage off China's economic growth.

Later today, the API is releasing its U.S. inventory stats.



A/S Global Risk Management is a provider of customised hedging solutions for the management of price risk on fuel expenses. The company has offices in Denmark and Singapore. For further details about its risk management products and services, please call +45 88 38 00 00 or email hedging@global-riskmanagement.com.






Related Links:

Where to go from the OPEC meeting
A/S Global Risk Management Ltd.

Latest News:

EGCSA 10th anniversary workshop to be held in London
EGCSA member survey reveals scrubber system increase
Oil and fuel oil hedging market update
Many unresolved issues left for last PPR meeting before 2020: IBIA
Volatility and supply
IBIA calls for bunker sample verification guidelines before 2020
GP Global inks accord to produce and market Cepsa marine lubes in India
Oil and fuel oil hedging market update
North P&I launches guide on avoiding and defending bunker disputes
Build in stockpiles and record high U.S. oil production
IMO working group develops plan to help ships prepare for 2020
Oil and fuel oil hedging market update




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Cape Town
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio de Janeiro
Rotterdam
Santos
Singapore
News
Latest News
Blogs
Archive
Americas
Asia
Europe
Middle East
News
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Environment
Events
Financial
Fuel Quality
Lubes & Additives
Oil Spills
People
Port News
Projects
Regulation/Legal
Services, Products, Technology
Statistics & Research
Vessels
Contact & Terms
Contact Us
Advertise
Terms & Conditions
Privacy Policy
Events
Upcoming Events