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PVM Midday Report 28 January 2015

Published Wednesday, January 28th, 2015

Headlines

  1. Chinese refiners to hold 15 days’ worth of crude throughput from 2016
  2. Goldman Sachs forecasts WTI to stay close to $40 bbl during the first half of 2015
  3. Greek Finance Minister warns that it will not back down in negotiations with lenders
  4. US mortgage applications index falls 3.2% in week ended January 23

Oil

Fundamentals:Goldman Sachs have reiterated their bearish outlook for crude prices in the first half of this year after predicting that WTI will trade close to $40 bbl throughout this period. This comes as the EIA is expected to announce a big weekly build in US crude oil stocks and within that an increase at the WTI delivery point in Cushing. Barclays have tracked similar downward revisions by other financial institutions to 2015 oil price estimates in its latest forecasts as it sees Brent and WTI averaging $44 & $42 bbl respectively, down from $72 & $66 bbl previously. Meanwhile, China’s top economic planner has revealed that the country’s refineries will be expected to store enough crude to cover 15 days of throughput from next year which will be reduced to 10 days’ worth should oil prices reach $130 bbl.

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Posted by Stephen Brennock

Stephen Brennock joined PVM in 2013 after having worked as a project manager for a business development firm. He graduated with a degree in Business Management in 2007.