【FujiTom】 Tokyo oil market plunges sharply due to a double punch of overseas weakness and yen appreciation

(Tokyo crude oil and petroleum products)
On the 4th, Tokyo crude oil and petroleum products fell sharply. As of 11:00, the front-month contract for crude oil futures September was 58,000 yen lower at 360,000 yen, the front-month contract for gasoline futures October was 53,000 yen lower at 492,900 yen, and the front-month contract for kerosene futures October was 48,000 yen lower at 475,200 yen.
The Tokyo crude oil market, fearing a further yen appreciation and declines in overseas oil markets, fell from the night session, and the daytime trading saw the yen strengthen further, widening the losses. Yet Tokyo still appears to be resisting further declines. Holdings of stockpiles and expectations for timing remain under the surface, and pullbacks are being bought. However, given the move to unwind Libya’s production cuts, it can be said that a major supportive pillar has been lost, so a return-to-sell trend should be considered.
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