OIL: Shandong Teapots Restart CDUs as Feedstock Prices Fall: Platts
Mar-06 11:19
Independent refineries in China's Shandong province have begun restarting their CDUs following a recent decline in fuel oil prices, signalling a tentative recovery in the sector, Platts said.
- The restart comes amid challenges posed by a heavier tax burden on imported fuel oil, a key feedstock for refineries without crude import quotas.
- Some refineries shut CDUs in late January due to soaring costs from new consumption tax regulations.
- These regulations led to a 20%-60% increase in consumption tax on fuel oil, making it uneconomical for many refineries to operate, Platts added.
- Starting from late February, refineries with a combined capacity of 178k b/d began restarting their CDUs as fuel oil prices declined.
- Lower fuel oil prices have improved the economics of restarting operations.
- However, OilChem said that Shandong’s teapots face permanent and severe headwinds, due to new tax changes, restraining any recovery.
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OPTIONS: Larger FX Option Pipeline
Feb-04 11:15
- EUR/USD: Feb05 $1.0300-05(E1.2bln) $1.0500(E1.4bln); Feb06 $1.0250(E1.5bln), $1.0315-25(E2.2bln), $1.0400(E1.0bln)
- USD/JPY: Feb05 Y153.15-25($2.0bln); Feb06 Y153.90($1.4bln)
- GBP/USD: Feb06 $1.2455(Gbp1.2bln)
- EUR/GBP: Feb06 Gbp0.8465(E1.1bln)
ECB: Rehn Backs EU Retaliation Against US Tariffs
Feb-04 11:11
Bank of Finland Governor Rehn’s interview with the FT focuses solely on the prospect of a trade war with the US, not touching on monetary policy matters (though, his views around monetary policy ceasing to become restrictive in Spring/Summer this year are well-known at this stage). Some highlights:
- "The last thing we need is a new trade war between allies but we need to take proportionate policy measures [in case the EU is going to be targeted by the US],"
- “If you ask economists, the majority would say that it would be better for everybody not to retaliate. But this is not only [about] economics, this is mostly politics"…."It's better to prepare policy measures, consult member states and in case Europe will be concretely targeted by tariffs, then make it more specific”.
- "Tariffs will hit most American consumers and will have an inflationary effect on the US economy,"
- “There seems to be a different kind of rationality [in Washington] than to what we are used to in international relations,"…."As President Trump has himself stated, he's a 'tariff man' and it seems to be a very ideological issue for him and his administration".
US: SOFR FIX - 04/02/25
Feb-04 11:09
SOFR FIX - Source BBG/CME
- 1M 4.30733 -0.00535
- 3M 4.30188 -0.00125
- 6M 4.26173 0.01066
- 12M 4.19270 0.02496
