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…
Headlines
- OPEC forecast for 2015 oil demand growth unchanged at 1.18 mbpd
- Secondary sources put OPEC May oil output at 30.98 mbpd, up 24,000 bpd on April
- European Commission claims latest proposals by Athens still fall well short
- Greek deflation persists as consumer prices fall 2.1% year-on-year in May
- US mortgage applications index rises 8.4% in latest week; first increase since mid-April
Oil
Fundamentals: The latest monthly report from OPEC has seen it leave its estimates for 2015 global oil demand growth and the call on its crude unchanged at 1.18 and 29.32 mbpd respectively. Furthermore, it has maintained its prediction for non-OPEC supply growth this year at 680,000 bpd. The cartel’s de facto leader Saudi Arabia claimed that its crude output inched higher by 30,000 bpd to 10.33 mbpd in May from the previous month while secondary sources have put the organisation’s total production last month at 30.98 mbpd which is up a modest 24,000 bpd on April.
Technicals: Resistances have come under pressure as expected with all the contracts having tested initial upside targets at 61.43 WTI; 65.80 Brent; 194.24 Heat; 213.05 RBOB and 595.75 July Gasoil. However, it’s the settlements that count and only closes above the aforementioned levels will be deemed constructive and maintain the upwards momentum. Should this happen the recent continuation highs and important resistances will be green-lighted at 62.58 WTI; 69.73 Brent; 205.72 Heat; 218.93 RBOB and July 628.75 Gasoil.
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