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…
Both contracts finished Friday lower but ICE looked more negative at the end of the week than NYMEX. The price movements of this morning have confirmed this view and it is recommended to be short, if anything, in the ICE contract whilst bulls, who were forced to go flat at the close on Friday on the NYMEX contract, might be given a fresh buy signal by the end of trading today.
July ICE: After the 13-day M/A was closed below on Thursday the contract weakened slightly further on Friday and managed to settled a few points lower than the 34-day contract M/A. These two moving average values are 42.55 and 42.35 at the time of writing and whilst the price action is below them the chances are that we shall see lower numbers. In other words, those who decided to sell short in the latter part of last week should only get concerned if the higher of these two were settled back over. On such a move the sentiment will flip neutral and the test of the 5 and 8-day M/As will be expected. The latter two are at 42.85.
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