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SunSirs: Crude Oil Adjustment is not over

May 28 2020 10:46:25     SunSirs (Selena)

The price difference between U.S. gasoline and diesel cracking continued to fall, while the product oil followed the rising crude oil. In the near future, the price difference of U.S. gasoline and diesel cracking will continue to fall. The price difference of WTI321 cracking fell to 9.79 from 14.72 on May 10, down nearly 33%. This shows that the downstream crude oil is weak, and the demand for refined oil after the resumption of work in the United States is limited, which may be related to the trend of home office. In the near furure, crude oil will be shaken and consolidated, waiting for the global resumption of work to further strengthen, so as to promote the consumption of gasoline and diesel oil and boost the cracking profit, so that the crude oil has the power to go up to a new level and the monthly difference between crude oil and crude oil weakens.

In the middle of May, Brent oil difference between January and February strengthened to the highest value of -0.24 to the middle of March this year. The recent high volatility of crude oil, Brent's difference between January and February weakened again to -0.57, WTI's monthly difference also weakened, Dubai's and Aman's monthly difference weakened the most obviously, which may be related to the weakening demand for replenishment in the Middle East. Middle East to Far East freight dropped 0.08 to 1.64. EFS-0.59. We believe that the adjustment of crude oil is not over yet. The current price is facing the pressure line in mid April. There is a slight top deviation of the four hour K-line, and crude oil may have a large adjustment. It is suggested that more single positions should be cut.


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