Oil Narratives
Oil Narratives - Geopolitics
Crude oil structure defies reports of a glut, driven primarily by geopolitics.
Brent has been particularly impacted, as tensions between the US and Iran flair.
Geopolitical outcomes in Venezuela have led to ample supply of medium/heavy sours within the market.
US commercial crude stock levels are building at a meager pace as runs have been strong, countering global glut narratives...
Oil Narratives: Tight Freight and Strong Demand
Despite bullish outright fundamentals from geopolitics, weather, and supply disruptions freight may have had the greatest outsized impact.
Tightness in MRs within the US Gulf post winter storm Fern led to prompt pricing above 300 WS.
This led to closures of gasoline and distillate arbs towards LATAM and Europe.
US clean products have built at a healthy pace due to higher US refinery utilization…
