Crude Oil

Discussion in 'Commodity Futures' started by bone, Nov 7, 2018.

  1. Banjo


  2. bone

    bone ET Sponsor

    As for the Sour Crude - refiners will typically blend it with light sweet crude in order to allow for their catalytic cracking units to be able to digest it. There's also a price advantage in being able to do that. Refining straight Sour Crude dramatically decreases refinery throughput and puts a significant burden on the catalytic elements and maintenance crews. Very few refiners in the world have the plants to refine straight 100% Sour Crude.

    Would appear that the big swinging dicks are quite actively trading the spread between Sour and Sweet Crude varietals.
    Last edited: Feb 1, 2019
    #52     Feb 1, 2019
  3. bone

    bone ET Sponsor

    Despite some bullish technicals, a modestly firmer stock market, and the continuing saga from Venezuela - WTI is off today. So at least for today, the abundant North American supply narrative and warmer US temperatures has overpowered the demand side of the equation.
    #53     Feb 4, 2019
  4. themickey


    Yup, my analysis indicates today is a minor blip, still bullish.
    A narrow range having a breather day, tis all it is.
    #54     Feb 4, 2019
  5. bone

    bone ET Sponsor

    Another day with equity indices up moderately and WTI off slightly. Warm weather taking the bid out of heating oil.
    #55     Feb 5, 2019
  6. The beautiful crash starts from week of Feb 18th... Can't say I didn't warn you!
    #56     Feb 5, 2019
    SimpleMeLike likes this.
  7. themickey


    Sentiment changed and fast on Wednesday.
    Nervousness abounds.
    #57     Feb 7, 2019
  8. bone

    bone ET Sponsor

    Firmness in Natural Gas is helping prop up WTI for the time being in the face of a down day for equities.
    #58     Feb 8, 2019
  9. TraDaToR


    Hello Bone, what do you think about the RB/HO spread right now? Refineries have been maximizing their distillates output vs gasoline for quite some time now...
    #59     Feb 10, 2019
  10. bone

    bone ET Sponsor

    That's true - but the dynamics are different than you suggest. The firmness in Natural Gas has rubbed off on the Heating Oil contract. At this moment Gasoline is off twice the range of Heating Oil.

    Look at last week - the Gasoline/WTI Crack was much firmer than the Gasoline/Heating Oil Crack.

    Personally I would be much more amenable to looking for a place to buy the Gasoline/WTI Crack. I'm not there yet, as the Gasoline Crack has been trending down since last fall, but last week it showed some signs of resurrection.
    Last edited: Feb 11, 2019
    #60     Feb 11, 2019
    TraDaToR likes this.