Inversion: Fuel Oil (Bunker) prices > Crude ?

A possible upcoming inversion. Fuel oil/bunker prices approaching and expected to surpass crude.
[1] [2] [3]
Prices: crude/bunker.

Of course this is very much influenced by refinery capacity adjustments.

On the back of the above, the West-East arbitrage cargoes trade has been booming for the last several months and is expected to continue for the rest of the year.

Nonetheless, a market tell ?
Ouch’nd indeed…

[Wonder what it will mean for all the knock-in-knock-out swaptions that risk managers at the producers/shipping lines have been ‘hedging’ themselves with. This would surely be a major exercisable event.

Will this translate into even more crimped bonuses for friends in the oil brokering business…


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