Surging inventories at Cushing, Oklahoma had only limited impact on crude prices yesterday. June WTI traded on the soft side relative to its Brent cousin and the WTI forward curve. The major benchmarks remains on the high side of OPEC's price band with strong support continuing to enter the market on the financial spec side.
Buyers entering the Heating Oil market (a proxy for Jet) have been watching the situation in Europe for signs of easing of flight restrictions as well as the increase in diesel demand related to agricultural activity in China.
Traders looking to profit from a crude and products market that certainly looks to be a bit ahead of itself may be interested in the Brent Asian-style July10 $75 put, currently trading around $1.10 ($1,100 of total premium at risk). Similarly, bunker consumers worried about continued momentum higher can look for zero premium protection in the form of a Singapore Fuel Oil 180cst 3Q10 Price Ceiling at $550 in exchange for accepting a price floor around $480.