Front month calendar spreads show that Friday's selloff hit crude harder than products. That being said, hedge funds likely continued to liquidate long positions in ICE gasoil, after selling 6,200 contracts in the week ending November 15th.
Oil markets have rallied last week despite a yet still hawkish tone from Jerome Powell, the FED governor. Rumours around China potentially lifting its sticky zero-covid policy have helped propel front-month prices for Brent by 6% in four days to just under $99/bbl. However, markets could be jumping the gun too early. Chinese authorities have tempered some hope about a turnaround in the country’s zero-covid policy.