Technical & Fundamental Oil Reports Specialists

Follow us

PVM Midday Report 07 July 2015

Published Tuesday, July 7th, 2015

Headlines

  1. UAE crude oil exports to dip 200-250,000 bpd in 4Q due to refinery upgrade works
  2. Chinese authorities award first crude oil import quota to independent domestic refinery
  3. Speculators trim net positions in US crude by almost 11% in week to June 30
  4. Chinese bourses resume nosedive; 200 further companies request trading suspension
  5. German industrial output flat in May; April revised down to 0.6% from 0.9% previously

Oil                                                                                              

Fundamentals: Crude oil exports from the UAE are expected to dip by 200-250,000 bpd in the last quarter of 2015 as the OPEC member carries out refinery upgrade works to boost capacity. Authorities in China have given an independent refinery approval to import 7.5 million tonnes of crude oil a year in what is the first such case since the introduction of new laws aimed at boosting private-sector participation in its oil industry. Speculators have taken an axe to bets on rising US crude prices after slashing net length in ICE & NYMEX WTI by 25,956 lots in the week to June 30.

Technicals: The expected upside retracement has taken place this morning as expected following yesterday’s bloodbath but the energy complex remains overwhelmingly bearish. The modest move higher will fizzle out with the contracts still having targets lower greenlighted at 52.31 WTI; 55.38 Brent; 168.50 Heat; 192.09 RBOB and 509.25 Gasoil. Expect these supports to come under pressure in the not too distant future as key resistances fade from out of sight.

to read the rest of the report, please click here

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.