Traders Think Hedge Funds Are Missing a Trick With OilBy
Vitol CEO Ian Taylor: “Physical differentials are improving”
Discounts narrow as refiners run harder, global demand rallies
Hedge funds are still holding large bearish bets against oil and OPEC, yet out in the real world traders and refiners buying and selling actual barrels say it’s starting to look somewhat more bullish.
“The market is looking a bit better,” Ian Taylor, chief executive officer of Vitol Group, the world’s largest oil trader, said in an interview. “Physical differentials are improving across the world.”
Differentials are an important indicator of the state of the market. They reflect the price of each type of crude compared with a benchmark, often Brent or West Texas Intermediate. The narrower the discount — or larger the premium — the stronger the market for that particular grade…
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