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…
A brief test of support did not last long as the market turned after NYMEX opened and by the end of the day the contracts settled higher. WTI lived up to its bullish expectation and closed over the 34-day M/A. The 94.01/22 range resistance area was also settled above paving the way for a test of the next level higher at 94.94/95.07. These are the end of August-beginning of September daily highs on the November contract. Longs are recommended to take profit there and start buying again if the 38.2% retracement level of the June-September downtrend at 95.24 is broken and closed over. In that case this contract will be expected to jump up to the 200-day contract M/A at around 95.72. WTI looks healthy and this bullish edge will only be taken off if the 34-day M/A at around 93.01 is closed below. Supports held on Brent, Heating Oil and Gasoil but these three contracts have not turned entirely positive yet. The fact that their daily slow stochastics are pointing north is encouraging but what they need to do now is to close above their respective 13-day M/A resistances.
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