OIL: India's ISPRL Talks for Strategic Oil Storage Overseas
Feb-19 13:48
India is in initial discussions with Oman to lease a facility to store 5mbbl of crude, according to of Indian Strategic Petroleum Reserves Ltd cited by Reuters.
- India is seeking oil storage in other Middle Eastern countries as part of efforts to raise SPR capacity to protect against any global supply disruption with dependence on imports for over 80% of its oil requirements.
- "If the talks with Oman materialise this would be the first time we will be holding strategic storage overseas," ISPRL chief executive L.R. Jain said.
- ISPRL currently operates three SPRs in southern India with a combined capacity of about 5.3m tons.
- ISPRL plans 4m tons of strategic storage at Chandikhol in eastern Odisha state and 2.5m ton at Padur in Southern India, while a 5m tons store is under consideration at Bikaner in Rajasthan.
- Current ISPRL oil reserves can cover 9.5 days of demand and Indian company storage facilities cover 64.5 days.
- India aims to raise capacity from 74 days of crude oil and refined fuels storage with IEA membership requirements for a minimum of 90 days of consumption.
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EQUITIES: Extending gains in the US and Europe
Jan-20 13:43
- Equities are spiking higher following the report from WSJ that Trump won't impose tariffs Yet.
- European Equities continue to perform well in 2025, SX5E makes a fresh 20yrs high, and next resistance will be seen at 5200.00.
- The Bank index (SX7E) has broken above 158.00, some of the best levels seen since 2015, but ain resistance in the Index is at 163.34, the 2014 high.
BONDS: Rallies A Little As Reports Play Down Odds Of Immediate Trump Tarrifs
Jan-20 13:37
Modest bid in core global FI on the back of a WSJ piece suggesting that "President-elect Donald Trump is planning to issue a broad memorandum Monday that directs federal agencies to study trade policies and evaluate U.S. trade relationships with China and America’s continental neighbors—but stops short of imposing new tariffs on his first day in office, as many trading partners feared."
- The reaction presumably comes as the delay to any fresh U.S. tariffs presents less inflationary risk for markets.
- The bid in equities and weakness in the USD is more prominent from a cross-market perspective.
CANADA: USDCAD Clears First Support On WSJ Story Downplaying Immediate Tariffs
Jan-20 13:37
- USDCAD initially slumped 140 pips on that WSJ story re no new tariffs yet.
- Hitting a low of 1.4323 (latest 1.4370 in fast trading), it pierced support at 1.4364 (20-day EMA) and stopped short of 1.4302 (Jan 15 low).
- CAD still lags some high beta peers on the day though, gaining 0.9% to the USD on the day vs 1.2% for NZD and SEK.
