In Oil, we are hovering the $50 mark in Brent crude, which as readers know is the benchmark that SFOT watches. However, his short position is in WTI where we are well below $50. Inherent in his view is that K9 WTI has significant selling pressure, both against other crude as well as on its own curve, for reasons well documented( fund rolls, landlocked in cushing etc). As in the last week, front line crude prices recovered towards the end of the week. We shall see if it does so again this week but if DOE data today mirrors that of API yesterday, $45 can be taken out today.
May09 WTi-Brent spread
That crude inventories built over 6mio barrel, with demand down 1.4mio bbl is extremely bearish, probably explaining a good chunk of the weakness we are seeing this am. However, distillates drew while implied demand for distillates went up is providing some sort of support for distillate cracks at the moment. We shall wait for DOE to confirm some of these findings but it does not look good for now.
API stocks weekly
Positive: Away goal for Arsenal, and in style it was done. Will post a link here for admirals when it can be found or if anyone has a good link, pls post! In good form now, i hope to go through to the semis. Perhaps its Porto, with their 2 away goals yesterday.
Negative: Lost William Gallas for rest of season. Arsenal has no luck with injuries of players yet again.
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