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PVM Midday Report 23 April 2015

Published Thursday, April 23rd, 2015

Headlines

  1. Reports of fresh Saudi-led airstrikes against Houthi targets in southern Yemen
  2. Russian exports of oil-related products dip in March on lower refinery runs
  3. China’s April HSBC Flash Manufacturing PMI slips to one-year low of 49.2
  4. Eurozone April Flash Composite PMI dips to 53.5 from 54.0 in March
  5. UK March retail sales fall by 0.5% m/m; misses expectations of +0.4%

Oil                                                                                              

Fundamentals: There have been reports of fresh airstrikes by the Saudi-led coalition against targets in southern Yemen and come in spite of Tuesday’s announcement of an ending of military actions. Russian exports of gasoline, gas oil and fuel oil dipped in March compared with February as refinery runs fell by 5.3% over the same period due to seasonal maintenance work. Germany’s residential heating oil stocks were seen falling to 59% of tank capacity at the start of April which is down from 61% a month earlier.

Technicals: The contracts are recovering from the early weakness and look like putting resistances under pressure for a bit. The key is the action at the 5 day MAs on most contracts. WTI is below the 5 and 8s around 56.79/83 and above the 13 day at around 55.50. Brent is at the 8 day around 62.68 and below the 5 day around 62.89. Heat is at the 8 day around 186.87 and below the 5 day around 187.03. RBOB is above the 5 and 8s around 192.08 and 191.39. The key is holding over and then what happens at the key resistance at 195.03 and 195.48/54. Gasoil is above the 8 around 567.25 and below the 5 around 572.25. The stochastics are negative on all but RBOB. The market is not harmonious and it’s advised to be patient and wait for developments.

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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.