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…
The contracts generally failed at their 5 and 8 day MAs yesterday and the then fell apart. Heat had tried to move over its 34 day MA and once this became too large a hurdle a price rout ensued, culminating in closes below all the short term (s/t) MAs on all contracts. The contracts look very vulnerable and lower numbers may well be on the menu. There are targets lower on WTI to 94.34 and Gasoil to 853.00. The rest are still holding last ditch support. These targets, and future bearishness, would look a lot safer if RBOB moved and closed (m/c) the key support at 266.07. This is the most important support on the board today – watch it carefully. Below here and the complex is in trouble – use it as a guide. WTI is struggling. The key here is the action around 95.79, a c/p. Below here and it has a valid target lower to 94.34. Above 95.79 and it is holding. Further resistance is at 96.43/55, range and the b/b pivot, followed by the 5 day around 96.85 and the 8 day round 97.02.
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