Ann: Business Update, page-8

It just goes to show that you can't take anything for granted - like the premium over WTI for Louisiana Light. The WTI hedge price was at US$52 as I recall so a $7 discount still leaves BYE a good margin, albeit on substantially reduced volume. I guess the question now is how long it will take US oil demand to recover. Interesting times.

A couple of days ago the WTI discount to Brent had reduced to around US$2, now it is back to nearly US$6. I am guessing that reflects the reduced demand for oil in the USA as the virus numbers begin to rise across the country. Lets hope that they can keep a lid on COVID numbers across the USA and demand in the USA can bounce back quickly.

Anecdotally I heard today that Chinese demand for Macadamia nuts in Australia has surged back to underwrite the price at recent highs after depressed demand numbers coming out of Europe for macadamias and other agricultural commodities were seen in February. The Chinese seem to be bouncing back quickly. Lets hope this crisis rolls through the rest of the world at a similar speed and things can bounce back elsewhere without everyone losing their furniture in the process.