PVM Midday Report 13 June 2016
Headlines
OPEC hints at tighter oil balance in 2H 2016; output down 100,000 bpd in May
Chinese implied oil demand falls by 380,000 bpd in May y/y to 10.24 mbpd
Iran’s biggest oil…
June ICE: The contract settled well below Tuesday’s low at 47.20 and the monthly correction point at 47.18. The latter is the 50% c/p of the monthly move up from 18.20 in August 2009 to 76.15 in March 2013. Simply put it, the close of yesterday was a sell. The fresh move down green-lighted the next objective to the downside. It is the 45.50 range support, the monthly low back in November 2011. It is worth remembering that yesterday’s move actually validated a longer-term target – the 61.8% retracement level of the above-mentioned move up at 40.35. It is, however, unlikely that the contract will fall down there in a straight line so it is only reasonable to take it step by step.
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