Crude futures climbed over the week, surpassing $84/bbl on Monday morning, which was the first weekly gain in 3 weeks.
Heating oil and gas oil were the most negative in the refinery margin change this week. We saw strength come back into EBOB and Gasoil which has helped the products we look at in the swaps market in Europe see greater strength.
James says the macro news last week was the US CPI data, which is falling again. There was also weaker than expected retail sales and industrial production, dragging US yields lower. Elsewhere, the big movers of the week were in the commodity markets, with copper, gold, even orange juice at all-time highs. Silver though was the big mover, breaking key resistance at $30 and now targeting all time highs of $49.8. Nickel, tin, zinc, aluminium….. are all surging higher as well.
The team also discuss the big shale oil story coming out of the US regarding a wave of class action lawsuits, after regulators claim the industry conspired to curb production.
The trade idea this week is buy Long Jun/Jul DFL.