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A tortoise or a lemming?

Published Tuesday, September 30th, 2014

WTI continued to close in on Brent yesterday as it climbed +$1.03/bbl compared to +20cts/bbl for Brent taking the closing arb to -$2.63/bbl, the smallest WTI discount for a year. The latest CFTC report confirms that Brent continues to fall out of favour with speculators. Net speculative length fell to 43,559 lots in the week ending September 29, the lowest level since June 2012.

The Buzzard field had a hiccup on Friday but is back to fall production now. Platts announced that the long mooted extension of the loading period for North Sea cargoes included in its dated Brent assessment will take effect from February 2015. US oil exports reached 400,000 bpd in July according to the EIA figures and the first cargo of Alaskan crude to South Korea for 14 years is reported to have set sail.

Reuters report that US refineries plan a smaller maintenance programme than usual this year to take advantage of the margins available. The nationwide maintenance programme for October will shutdown 720,000 bpd of CDU capacity compared to a five-year average of 900,000 bpd. For the autumn turnaround season as a whole, shutdowns will average 345,000 bpd compared to a norm of around 515,000 bpd.

to read the rest of the report, please click here 

Posted by David Hufton