PVM Midday Report 13 June 2016
Headlines
OPEC hints at tighter oil balance in 2H 2016; output down 100,000 bpd in May
Chinese implied oil demand falls by 380,000 bpd in May y/y to 10.24 mbpd
Iran’s biggest oil…
The market undoubtedly turned bearish yesterday. Since today is the day of the OPEC meeting it prove to be transitory but as of Thursday’s close every contracts settled below all of its daily short-term M/A with their daily slow stochastics negative. We identified WTI and RBOB as bullish yesterday morning with the other three contracts negative. The latter group was more dominant and by the close profits were probably taken on short positions on Brent, Heating Oil and Gasoil whilst WTI and RBOB longs went flat or possibly even short by the close. The profit-take level on Brent was the 62.83 range support that was closed below. This contract fell as low as the 100-day M/A that is currently at 61.47. A close below this area is a sell tonight. On Heating Oil it was suggested to cover short-positions at the 184.55 range. This support was also closed below and now the next sell signal would come in the form of a settlement below the 100-day M/A at 183.57.
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