Oil futures prices continued to REMAIN IN toppish momentum as COVID-19 and its impact on businesses is evident.
The current EU refinery utilization, calculated at on average at 72%, lead to complete shutdowns in some countries already as consumption demand, mainly attributed to the main products such as Gasoline, Diesel, Jet, Heating Oil and Naphtha declined 30-80% between March to May this year.
And this trend is unbroken, although some EU countries are planning to resume normal live in June this year.
Please note: Commercial and offshore storages are nearly full of products, which should impact pipeline flows and create “barge storages” from now on.
The BRENT/WTI spread narrowed to close at $3.70 in the front window delivery period. The GO front month spread closed in a contango at $15.00 (10.00). The current mogas crack reflects 90% lower value compared to normal live, while the BFOE DD price basis ended up in a positive trend.