"Massive" liquidity on ICE Gasoil Spreads this morning

A

Alex165

How to explain strength in ICE Gasoil spread structure? HOE and Singapore FOB are quite from yesterday. Is it just normal morning squeeze?

Offers just disappear x7z7
qp2.PNG


Than bids disappear in just 4 min
qp1.PNG


That example is just 0.01 % of all the mess that is going on in this market.

This algo know very well what he is doing. Any suggestion what company it could be? Who is the biggest market maker on Gasoil spreads?
 
Alex165 said:
How to explain strength in ICE Gasoil spread structure? HOE and Singapore FOB are quite from yesterday. Is it just normal morning squeeze?

Offers just disappear x7z7
View attachment 175782

Than bids disappear in just 4 min
View attachment 175783

That example is just 0.01 % of all the mess that is going on in this market.

This algo know very well what he is doing. Any suggestion what company it could be? Who is the biggest market maker on Gasoil spreads?
More...

Good to see someone trading Gasoil spreads on ET. I used to trade further back in the curve where there is less volume and the algos were less interested in playing because they can't scale. Are you trading at a firm?
 
Does ICE give size priority like CME? Maybe someone is offering 2000 to get to the front of the queue to get filled on 200.
 
Hey guys first post here. I trade Gasoil calendar spreads on ICE and am short the Nov/Dec calendar spread. Any ideas what is happening with the backwardation here? Something fundamental in the supply/demand dynamics? Or something else? Theories most welcome as I'm assessing whether to sell the spread further or ride it out....
 
12 month forward curve on Gasoil has been flattening in last month but is still mainly in mild contango. Oct/Nov17 and Nov/Dec17 backwardation is out of whack with this so perhaps a good opportunity to short these spreads?
 
Just some examples from the past 2011, 2012 2013 years XZ SPREAD:
s1x7qp.PNG

But back than Brent and Heating was also in backwardation and oil was above 100 $.
There is strength in Asia gasoil market. I don't see any serious accumulation on those levels, there is some, but not impressive.
Waiting for now, but for me it looks like opportunity.
 
Heating oil and Gasoil Z7Z8 paper bought a lot during last month, I want to see them selling. The only thing I see right now some seller appeared on HO Z7Z8 (yesterday first big iceberg filled). Patience...
 
interesting you are trading longer time frames than when I traded gasoil. We were market making and occasionally took a directional bias, generally we were flat EOD. Energy is a great space to be in.
 
Yes I think those days are over but a good reminder of what can happen. I use CQG but I didn't know they do daily continuation charts on spreads so cheers for that! Presumably you have IC as you can pull data way back to 2012?
 
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