Technical & Fundamental Oil Reports Specialists

Follow us

PVM Midday Report 10 April 2015

Published Friday, April 10th, 2015

Headlines

  1. Worsening security situation forces closure of Yemen’s 150,000 bpd Aden refinery
  2. China raises retail price for gasoline and diesel by ¥120 & ¥115 per tonne respectively
  3. US purchases 4.2 million bbls for Strategic Petroleum Reserve fill
  4. Chinese March inflation holds steady at +1.4% y/y
  5. French industrial production stagnates in February; UK factory output up by 0.1%

Oil                                                                                              

Fundamentals: The US has moved to replenish part of the 5 million crude bbls sold last March from its Strategic Petroleum Reserve after recently announcing a purchase of 4.2 million bbls which is expected to be completed by the end of July. In its latest weekly adjustment to retail fuel prices, China has raised the benchmark price of gasoline and diesel by ¥120/tonne and ¥115/tonne respectively. Meanwhile, the worsening crisis in Yemen has prompted authorities to close the 150,000 bpd Aden refinery.

Technicals: The contracts have more or less treaded water and are struggling for upside traction. The cautiously bearish outlook remains unless the following resistances are moved and closed over: 57.69 Brent; 51.66 WTI; 176.97 Heat; 179.99 RBOB and 539.75 May Gasoil. Look for further downside potential on a close below 50.13 on WTI; 55.97 Brent; 170.64 Heat; 173.85 RBOB and 521.00 on May Gasoil. The complex is faced with serious upside targets and the more likely scenario is a further loss of value. However, it is advised to be patient and wait for the next leg to be clear.

to read the rest of the report, please click here

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.