[Fuji Tomi] The Tokyo oil market will decline, but reaction to the sharp drop in overseas crude oil is lackluster

（Tokyo Crude Oil and Petroleum Products）
On the 8th, Tokyo crude oil and petroleum products are declining due to a sharp drop in overseas crude oil, but Tokyo showed notable resistance to declines. As of 11:00, crude futures for October were down 650 yen at 34,960 yen, gasoline futures for November were down 550 yen at 47,930 yen, and kerosene futures for November were down 420 yen at 47,950 yen.
Since the close of overseas trading before the holidays, overseas crude oil has fallen sharply. Even considering the possibility that overseas crude might widen losses at the start of the week, a drop of around 1,000 yen would not be surprising. After 10:00, WTI and Brent had slipped, and crude futures fell below 35,000 yen. In the Tokyo market, there appears to be anticipation of a technical rebound in overseas crude, but given the persistent weak fundamentals, the rebound should be limited. Since Tokyo was relatively resilient to the decline, there is little room for upside in Tokyo. A rebound could widen the decline if there is a forced run-up in buying. In the near term, investors are waiting for China’s April trade balance.
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