In today’s briefing:
- Slow Crude Inventory Build Keeps Oil Prices Well Supported
- Spread on Paper so Far
Slow Crude Inventory Build Keeps Oil Prices Well Supported
- US commercial crude oil inventory build-up slows while refined products’ withdrawal accelerates.
- OPEC+ members announced the extension of their voluntary supply cut of 2.2 million barrels per day to end of June (from end of March as previously announced).
- US refinery utilisation rates show signs of a speedy recovery, rises for the second consecutive week and jumps to 84.9%.
Spread on Paper so Far
- Gross spread (as of 13 March closing) on an estimated 1 Mondi PLC (MNDI LN) x 0.2701 DS Smith PLC (SMDS LN) exchange equation is 5.6%. New PUSU is 4 April.
- The merger would create a European board and packaging giant. Interloper risk seems low, as are the chances of the deal being contested by antitrust regulators.
- Mondi and DS Smith are verifying the anticipated synergies resulting from their combination. Considering synergies of 3% of DS Smith revenues, the present value might not cover the premium offered.
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