Read on Twitter
Big moves in oil complex coming. Easy squeezy peezy.
Talking something along the lines of 42-44 handle TI
RDR -100 to -50
Confused about the move in diesel FP and GC/NYH outright 62g structure? Spreads?
Fine. My view - same as I alluded to months ago in crude when I spoke about dark pool commod, USO, JET, etc.
It& #39;s not hard to figure out how order flow is going to tilt once you get a finger on the pulse of the underlying... straightforward econs.
Barrels spoken for = future supply offline. Refiners, normally active supply, partook in said behavior, as they also allocated otherwise unused assets (storage) at spreads not seen in a dog& #39;s age.
Therefore, at the end of the day it is just a matter of optimization and then extrapolating future participation of various types of market participants.
If I& #39;m getting paid 6 bananas to sit tight until date X in the future and I can pay 2 bananas now to replace current spot commitments... what will I ever do? Why sell out for 2 bananas when I am getting paid 6 to sit on my ass.
Same old same old. Until the market starts paying you to release those barrels - think transition from winter to spring last year at tale end of winter grade F gasoline, when F2 stock got pulled into winter blending, it is going to be bid.
