There is currently a divergence between sentiment in the physical and futures markets. The former has seen a strong performance with Totsa and Trafigura on the buy side of the physical. In contrast, Brent futures flat price and spreads were pressured lower following the surprise announcement by OPEC+ confirming their intention to bring back barrels in April. As a result, we expect prompt March Dated to price out strongly, while we hold a cautiously bearish view in the deferred. Reflecting this, the Bal-Mar/Apr DFL has risen from $0.15 to $0.40/bbl w/w.
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