In this episode, the Trading Corner team delves into the recent turbulence in the oil markets, examining the significant $10 sell-off in crude prices and its implications across various asset classes. The discussion highlights the unexpected outperformance of dated Brent relative to futures and spreads, and the resilience observed in specific contracts despite widespread market liquidation.​

Key topics include:

• The dynamics of flat price movements and the impact of mass liquidation events.​
• Strategies involving long flies and positioning at the front of the curve.​
• Seasonal demand factors influencing May cargoes in Europe and Asia.​
• Insights into middle distillates, with a focus on gas oil and heating oil cracks.​
• The role of swaps and price action in current market conditions.​
• The influence of summer travel demand on jet fuel markets.​
• Analysis of margins and the performance of light ends, particularly EBOB.​

The episode also features trade ideas, including a bullish outlook on Q3 EBOB cracks and considerations for heating oil cracks in deferred periods. You can gain valuable perspectives on navigating the complexities of the oil derivatives market during periods of volatility.

CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs and spread bets. You should consider whether you understand how CFDs and spread bets work and whether you can afford to take the high risk of losing your money.