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…
Headlines
- Fighting still taking place close to Libya’s El-Sharara oilfield and Zawiya refinery
- ICE Brent speculators cut length by 3,439 lots in week to September 16
- Ukraine prepares to withdraw heavy military equipment to within pre-agreed buffer zone
- Greek current account surplus falls by 40% in July from same period a year ago
Fundamentals
Economy: A bout of caution has taken hold on European stock indices as investors fret over the prospect of further evidence pointing to an economic slowdown in the world’s second biggest economy – the Eurofirst 300 is down 0.3%. Concerns are rife that China’s latest flash manufacturing reading due for release tomorrow may show that industrial activity is contracting. The adverse outlook on Chinese growth prospects were compounded by comments from the country’s Finance Minster which dismissed the possibility of new stimulus measures. This morning’s wariness comes in stark contrast to last week’s risk-on mood which saw global equities posting significant gains. The subdued environment is boosting demand for haven assets as benchmark Treasury and Bund yields slip 2 bp although recent dollar strength continues to weigh on gold which is falling 0.2%.
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