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PVM Midday Report 19 March 2015

Published Thursday, March 19th, 2015

Headlines

  1. Iraq to split southern oil output from May with heavier Basra crude grade being offered
  2. Kuwaiti Oil Minister frets over low oil prices but stands by OPEC output policy
  3. Reuters reports closing of Shell’s Nigerian Nembe Creek pipeline for planned works
  4. EU officials warn that Russian sanctions will remain until Minsk conditions fully met
  5. US jobless claims in slight rise during the week ended March 14

Oil                                                                                              

Fundamentals: Kuwait’s Oil Minister has revealed concerns regarding the impact of low oil prices on the state’s budget but declared that OPEC had no choice but to keep output steady in order to preserve market share. Iraqi oil officials have announced that it will split its southern oil production into two separate crude grades with a heavier grade, called Basra Heavy, being offered for sell from May. Reuters has reported that Shell has closed the Nembe Creek pipeline which serves exports of the Nigerian Bonny Light crude grade to allow for planned maintenance works.

Technicals: The contracts are giving up some of yesterday’s gains and are looking a bit fragile. There is no evidence that the down trend is over and we’d need moves confirmed by closes (m/c) over the s/t MAs for that to be the case. May WTI is vulnerable, and a m/c below 45.52 would green light a leg lower to 44.38. The 5 day is now resistance around 46.09. Brent is between the 5 and 8s around 54.70 (5) support and 55.70 (8) resistance. M/cs beyond these extremities will give us the next leg.

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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.