Crude is selling Tuesday and the physical market is not going along with it. The Russian diesel deal grabbed the headline. It has not loaded a single cargo. Freight costs have rewritten the delivered price of every barrel that has to cross an ocean. Heavy crude is piling up in the Americas with nowhere affordable to ship it. Sellers got a diesel announcement and a ceasefire that lasted less than 24 hours. They did not get the freight market to confirm either one.
Oil News: Freight Squeeze Keeps Brent Firm as Russian Diesel Deal Tests Crude
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Key Points:
- Russia’s diesel promise pressured gasoil, but no physical cargo has loaded and the energy ceasefire has already broken down.
- Freight of roughly $24.50 per barrel to Europe and $40 per barrel to Asia is trapping heavy crude in the Americas.
- Brent at $102.20 and WTI at $90.12 to $87.39 are the support tests that decide whether the selloff can extend.