Wrap – Week Ended 10/6/23



The ZLT was down 10.6% on the week last week amidst broad but low volume selling in the upstream and oil service group. We are traveling this weekend but in brief we saw heavy profit taking in oil on a large build in gasoline stocks. The basic 3-2-1 crack fell below $20 for the first time in several months and this plays into our thoughts of a fast move in throughput to the lows of maintenance season which should weigh on distillate stocks in the next few weeks. We don't expect cracks to remain low for long and we do see understored distillates going into winter as price supportive for crude. We also see speculation that Saudi and Russia will soon de-curtail their voluntary curtailments as ungrounded in fact.  Natural gas rallied on a shift in the weather and a smaller than expected build. We are still on track for 3.8 Tcf and winter weather still remains a wild card. We will soon further reduce the gassy wedge of the portfolio. Monday may see the largest transaction in our space in recent history (XOM's rumored $60 B buy of PXD) and regardless we expect more consolidation near term. 

Free Stuff Last Week:

Holdings Watch:

Have a good weekend, 


3 Responses to “Wrap – Week Ended 10/6/23”

  1. 1
    zman Says:

    WTI > $87

  2. 2
    Skipton Says:

    z i think that your number for sruuf in the wrap is incorrect i.itshould be nearly 17 thanks john

  3. 3
    zman Says:


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