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PVM Midday Report 22 June 2015

Published Monday, June 22nd, 2015

Headlines

  1. Saudi Aramco to postpone planned closure of its ageing Jeddah refinery to 2022
  2. Kuwaiti state oil company pushes back opening of the al-Zour refinery to beyond 2019
  3. Speculators trim net length in ICE Brent crude for sixth straight week
  4. ECB extends emergency liquidity provision to Greek banks; third time in less than a week

Oil                                                                                              

Fundamentals: An official from Kuwait’s state-owned oil company has revealed that the planned opening of what would be the biggest refinery in the Middle East, the 619,000 bpd al-Zour, has been pushed back to beyond 2019 due to a shortfall in funding. Staying in the Gulf, Saudi Aramco is said to have postponed the planned closure of its ageing 90,000 bpd Jeddah refinery to 2022 due to rising domestic demand for oil products. Meanwhile, speculators have again trimmed bets of rising ICE Brent crude prices after cutting net length by 6,517 lots to 194,663 in the week to June 16 and the first time below 200,000 since the end of March.

Technicals: The recovery this morning should not be a complete surprise as the contracts are bouncing from and holding very important support. The most important is RBOB’s 34 day MAs at 204.97 and 204.38. The rest however have good support too at 59.61 Aug’ WTI (55 day); 63.29 Brent (100 day); 186.44 Heat (100 day); and 569.50 Gasoil (100 day). These are strong supports and not areas to be short near unless moved and closed below.

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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.