[RE]fuel Report Market Commentary

Year 10 RTFC prices moved modestly upwards Friday, to be assessed at 21.75p per litre, as firmer bids provided evidence of support.

Year 9 values were unchanged at 22.5p as steady selling interest capped any upward momentum.

Bids for Year 10 moved up from the 21p level to be heard at 21.5p per liter while offers held firm at 22p.

For Year 9, a number of sellers continued to be heard in the market leaving little scope for values to firm.

Anticipation of the upcoming hike in next year’s mandate was the main factor continuing to provide the support for the Year 10 values, with the onset of a 7.5% target providing stimulus for a market that currently, taking double counting into consideration, stands around 2.8% according to one source.

“People are starting to buy Year 10… as it’s cheaper to buy RTFC’s given the differential,” the source said.

UK data updates, provided by the Department for Business, Energy & Industrial Strategy, showed the three months to August 2017 had seen a 0.2% increase in oil deliveries for inland consumption, while demand declined by a moderate 0.1%. Despite diesel’s recent press, demand rose 0.7%, while gasoline fell 1.1% and jet fuel fell 0.8%.