Pressure on the End User | S6 E08

It's been a bullish week for crude flat price this week and has been supported above $80 levels, reaching a peak of $85.50, which is seemingly finding resistance at current levels. However, overall market sentiment has been quite bullish from both hedge funds and speculators alike.

 As for refinery margins; there's been a week-on-week decline of nearly $3/bbl in the prompt. Currently on a downtrend but where will it find support? 

 Looking at oil from a macro perspective, China has cut the five-year loan frame rate by 25 basis points to 3.95%. Not only was that unexpected in the market, but this was the biggest move they've ever made, highlighting the urgency its central bank is trying to create to stimulate growth in the economy.

 Looking to CFTC and how people are positioned, we've been seeing hedge funds loading up on positions in both crude and refined products, but especially on crude futures in both Brent and WTI.

 Vincent's trade idea is Long Naphtha Cracks (A Contrarian Trade Idea – that found the bottom on Monday after an immense sell-off last week). We'll have a new Trade Idea out tomorrow, so make sure to subscribe to our YouTube channel to be notified.

If you would like to connect with any of our hosts on LinkedIn, please click on the hyperlinks below:

Greg Newman:  https://www.linkedin.com/in/oilderivatives/
Vincent Wu:   https://www.linkedin.com/in/vincent-wu-099816125/
James Brodie:  https://www.linkedin.com/in/jamesbrodiecmt/

Chapters for this episode are: 
0:00 Welcome 
0:47 This Week in Trading 
4:05 Macro Market News
7:29 CFTC Data
11:21 "Googling Oil:" World Oil News 
15:58 Trade Idea 
18:50 Poll Results 
19:25 What to Watch in the Macro Market