Pro Ultr Bloomberg Crude Oil(UCO.US)

Asia Fuel Oil-HSFO rally stalls though market structure retains strength

Asia's high sulphur fuel oil (HSFO) rally is stalling, with the February/March timespread for 380-cst HSFO narrowing to $19 per metric ton. Spot trading momentum has cooled, although some trades continue at supportive premiums. Cash differentials for very low sulphur fuel oil (VLSFO) remain in discounts, but premiums for delivered VLSFO marine fuel are firm due to tighter barge availability. Fujairah heavy fuel inventories fell 7.9% to 10.53 million barrels. Oil prices gained amid geopolitical tensions, and the U.S. is considering a license for oil production in Venezuela.

CANADA-CRUDE-Discount on Western Canada Select steadies

The discount on Western Canada Select (WCS) crude oil to West Texas Intermediate (WTI) was steady at $15.25 per barrel. The discount widened by approximately $1 in January due to market volatility linked to U.S. policies on Venezuelan oil production. Pipeline capacity is a concern, with Enbridge's Mainline operating at near full capacity. Alberta's oil production remains high, but upcoming maintenance could affect output. Global oil prices rose as tensions between the U.S. and Iran persist.

RUBBER-Japan futures set to snap three-day losing streak on weaker yen, firmer oil

Japanese rubber futures are set to end a three-day losing streak, buoyed by a weaker yen and rising oil prices. The Osaka Exchange's July rubber contract rose 1.24% to 343.3 yen per kg, while the Shanghai Futures Exchange's May contract increased by 0.99% to 16,280 yuan per metric ton. The yen is near a two-week low, making yen-denominated assets cheaper for foreign buyers. Oil prices are up due to geopolitical tensions, and lower rubber production in major producing countries is also supporting prices as the market approaches a seasonal low production period.

AUD/CAD Rises Above 0.9500 Ahead Of Canada’s Labor Market Data

AUD/CAD trades around 0.9520 after recovering from daily losses, supported by higher oil prices. However, the upside may be limited ahead of Canada’s labor market data and Ivey PMI release. WTI oil prices are around $64.00 per barrel but are on track for a weekly decline. The Australian Dollar weakened due to a tech-led equity sell-off but regained some ground after RBA Governor Michele Bullock indicated a need for a tighter monetary policy due to capacity constraints in the economy.

The U.S. Commodity Futures Trading Commission (CFTC): For the week ending February 3, speculators increased their net long positions in NYMEX WTI crude oil by 17,386 contracts to 80,377 contracts, reaching a new high in approximately six months