Brent vs Trafi/Glencore/Vitol's - WTI
I don't buy these stories of WTI being a landlock crude so that means Brent takes off. Yes we saw Brent - TI in Feb at 16. Now we are seeing the spread at 19? There isn't this much of a disconnect between the two contracts.
European Refineries are running at 80%ish since they dont take the sour grades which the Saudis are producing more of. Are the European Refineries bidding up Brent or are the Trafi/Glencore/Vitol's banging away at this spread?
Brent Futures (ICE): € WTI Futures (NYMEX): $
The weakness of the Dollar makes the spread even bigger. Blame the FED´s QE, weakening the dollar and strengthening the Euro.
Brent in ICE is priced in Dollars...
It def. does contribute..but today we see a stronger dollar Vs. Euro and Brent TI is down -1.23...Its not exactly clearly correlated. The strength in the euro cannot possibly last with the debt issues. Are you on bloomberg i'll send you an overlaid chart.
Exactly, but i see the Euro rising even higher after a PIIGS freeze out or new emergency credits
Dont look so much after Vitol and others. They´re no speculators, they´re hedging their physically traded oil.
The evil boys are Commodity-HFs and large scale prop traders, but they paid their price manipulating the markets (May 2011), now they´ve got lower equity to trade and higher margins
Are there position limits on Brent?
At ICE ?
Yes, of course, when you trade daily more than 100 lots--->reportable limit
Posting so I can find this again later.
https://www.theice.com/productguide/ProductDetails.shtml?specId=219
Thanks..I was wondering if there was a breakout similar to what the CFTC does for NYMEX positions. I thought i saw a goldman report where they had some breakouts but I can't find that data anywhere.
Goldman used the COT CFTC data. CFTC does not regulation over anything traded on ICE in Europe. Goldman used WTI NYMEX and ICE Futures Europe for their report.
I am aware of that rpt..But i saw a Goldman report with positions on Brent(ICE) not the Brent(NYMEX) contract. I will dig up the rpt if anyone wants to see it.
ZeroHedge covered this today in some detail. Its not due to $/Euro rates (as already mentioned):
http://www.zerohedge.com/article/goldman-presents-three-scenarios-where…
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