Technical & Fundamental Oil Reports Specialists

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PVM Midday Report 19 May 2015

Published Tuesday, May 19th, 2015

Headlines

  1. Kuwaiti oil exports edge higher to 1.8 mbpd, crude production at just under 3 mbpd
  2. Chairman of Libya’s NOC sees oil prices rising in H2 ‘15 and 2016
  3. April UK consumer price index dips into negative territory for the first time since 1960
  4. Zew survey of German investor sentiment falls to five-month low in May
  5. ECB’s Coeure signals increased bond-purchases in May and June

Oil                                                                                              

Fundamentals: An official from Kuwait’s national petroleum company has claimed that its oil exports have inched higher to 1.8 mbpd with total production close to 3 mbpd. The Chairman of Libya’s state-owned oil company has hinted that he expects firmer oil prices in the second half of this year and may continue to rise in 2016. These comments are in a similar vein to quotes made yesterday by Kuwait’s OPEC governor in which she claimed that a rebalancing of the oil market will support prices in the latter part of this year.

Technicals: The contracts are sliding some this morning as the correction lower continues. Heat and Gasoil have now followed the crudes by moving below the s/t MAs. RBOB however is proving resilient but has just slipped below the 8 day MA around 203.01. A move confirmed by a close (m/c) below here would suggest more weakness yet. RBOB flagged this morning weakness by having failed for the fourth day in a row at 206.18. It’s the closes tonight that matter and it’s very likely the contracts will start to recover this afternoon. Watch RBOB for guidance.

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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.