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PVM Midday Report 28 April 2015

Published Tuesday, April 28th, 2015

Headlines

  1. Saudi oil exports marginally down in February to 7.35 mbpd from 7.474 mbpd in January
  2. Oman announces plans for DME crude oil floating storage facility
  3. Saudi’s al-Naimi “very positive” over Asian oil demand prospects
  4. Barclays raises 2015 Brent and WTI forecasts to $60 and $54 bbl, respectively
  5. Greek PM Alex Tsipras expecting bailout deal by end of next week

Oil                                                                                              

Fundamentals: Saudi exports were seen easing slightly in February to 7.35 mbpd from 7.474 mbpd in the preceding month and comes as the world’s top crude exporter said it was “very positive” about Asian oil demand prospects. Oman has announced plans to operate a floating storage unit later this year to help curb price volatility of crude oil futures on the DME. Meanwhile, Barclays has upwardly revised its 2015 crude forecasts with Brent and WTI seen averaging $60 & $54 bbl, respectively.

Technicals: The contracts dipped back a bit this morning but no damage was done at the 8 day MAs which have pretty much held as the market has rallied. WTI is back over the 13 day MA around 56.50 but will struggle at the 5 and 8s around 56.97/57.08. It has no serious downside whilst 56.50 holds. Brent made a classic slingshot move from below the 5 to the 8, around 63.92, held and rallied. It is now just over the 5 around 64.49 and testing range resistance at 64.95. Whilst over the 5 and 8s it is healthy.

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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.