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PVM Midday Report 28 May 2015

Published Thursday, May 28th, 2015

Headlines

  1. Russia’s largest oil producer hints Venezuelan oil may replace declining US shale output
  2. Iran’s foreign minister hopeful of nuclear agreement within “reasonable amount of time”
  3. Oman to invest $7 billion in Indonesia’s oil & gas sector
  4. Greek government spokesman confident of deal by Sunday
  5. European Commission economic sentiment indicator up slightly in May

Oil                                                                                              

Fundamentals: Iran’s foreign minister has attempted to revive expectations of a nuclear deal by claiming that he remained hopeful that ongoing talks would result in a final agreement within a “reasonable amount of time”. Indonesia’s energy minister has announced that Oman has committed to invest $7 billion in its oil infrastructure with plans to build storage facilities, a petrochemical plant and a refinery. Russia’s biggest oil producer has claimed that falling oil output from US and Canada could be replaced by Venezuelan oil, a country in which Rosneft operates and plans to increase crude production to 8 million tonnes annually from the current 1.6 million tonnes.

Technicals: The market remains in trouble and very vulnerable. Many of the contracts have completed a price cycle and hit intra-day targets. They now need to move and close below key supports to green light targets south. The key supports are at 57.86 WTI; 62.51 Brent; 186.32 July Heat; 194.01 July RBOB; and 566.50 Gasoil. The market will be looking for lower numbers on closes below these levels. In the meantime rallies to the 5 day MAs are sales.

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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.