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PVM Midday Report 22 April 2015

Published Wednesday, April 22nd, 2015

Headlines

  1. Libya’s Hariga oil port reopens after security guards end strike
  2. Militiamen in southern Yemen vow to keep fighting Houthi rebels
  3. Nigeria cuts May OSP for its Bonny Light and Qua Iboe crude grades
  4. Release of BoE minutes reveal policymakers unanimous in keeping rates at historic low
  5. ECB executive hints that liquidity will be provided to Greek banks so long as remain solvent

Oil                                                                                              

Fundamentals: There have been reports of fresh skirmishes in southern Yemen as militiamen vowed they would continue to wage war against Houthi rebels until they were driven out of the region. This comes in spite of yesterday’s announcement by the Saudi-led coalition of an ending to military action in the beleaguered nation. Nigeria has cut the May OSP of its Bonny Light and Qua Iboe crude grades to Dated Brent +99cts and +$1.07 bbl, respectively. Meanwhile, the Libyan oil port of Hariga has reopened with tankers beginning to load crude after security guards ended their strike action.

Technicals: The ebb and flow of the market continues and the key today is the 8 day MAs. The contracts have made their slingshot (s/s) move lower from 5 to 8 (yesterday) and are now all below the 8s. Whilst this is the case one can expect a further s/s move lower to the 13s. The 8s are they key to this and are around 56.57 WTI; 62.12 Brent; 185.49 Heat; 189.36 RBOB and 563.00 Gasoil. The 13s are around 55.32 WTI; 60.75 Brent; 181.37 Heat; 185.82 RBOB; and 552.00 Gasoil. The odds are on a failure at the 8s, but maintain a close watch status.

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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.