*US 0.5% Under Pressure
American low sulphur fuel oil is under pressure as the retail and exports markets continue to remain poor, leaving few places to send 0.5% supplies. The drop in crude prices had previously pulled down prices, yet rising Brent prices again have not pulled up 0.5% alongside it. Brent has moved up some 68% since April, yet USG 0.5% prices have only recovered around 47%.
*Hedge Funds Directionless on Oil
Trading from money managers in the six major oil contracts was muted of late, with no strong clear signal coming from trading. Portfolio managers were small buyers of Brent (+17 million barrels), U.S. gasoline (+5 million) and U.S. diesel (+2 million), while selling small volumes of NYMEX and ICE (-13 million) and European gasoil (-1 million) according to Reuters.
*US Weighing Further Venezuelan Sanctions
The Trump administration is debating new sanctions on the country aiming to stop fuel entering the South American country. Iran has been ignoring previous sanctions, having delivered 1.1 million bbls of gasoline last week. This fuel is vital for the country as its own refining industry has been unable to produce to required product due to mechanical failures at its facilities. Fuel swaps had previously been exempted by the US, but as Trump tries to court anti-socialist demographics as part of his re-election campaign, we could see an further tightening of restrictions.