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PVM Midday Report 16 October 2015

Published Friday, October 16th, 2015

Headlines

  1. UK’s North Sea Buzzard oil field remains shut after stoppage on Thursday
  2. Indian gasoline and diesel consumption up 25.4% & 20.1% y-o-y in September
  3. Azerbaijan declines invitation to OPEC technical meeting
  4. Final reading of September Eurozone inflation confirmed at -0.1%

Oil                                                                                              

Fundamentals: Saudi Arabia’s oil minister has hinted at improving global oil demand growth prospects and claimed that the current oil supply/demand imbalance will lessen in the short term. Azerbaijan, which is expected to produce 40 million tonnes of oil this year, has declined OPEC’s invitation to its technical meeting scheduled for the 21st October. Meanwhile, Britain’s North Sea Buzzard oil field remains offline after suffering from an unexpected shutdown yesterday.

Technicals: A quiet morning with little technical excitements. WTI is just over its 5 day around 46.75 and at its 13 day around 46.98. It needs to move up and away from the 13 day in order to push higher to the 8 day around 47.58. Meanwhile there are no targets lower whilst it is above the c/p at 46.18.  Brent is similar. It is holding over the 5 day and c/p around 49.90 and whilst above here has no objective lower. It has yet to make much headway against the 13 day around 50.46. It needs to m/c over here to have some upside. Heat is above the range support and 5 day MA at 149.00 and 148.75 respectively. It has no target lower as long as these hold. The 8 day MA is around 152.62. RBOB is above its 5 day, around 131.83 but below the c/p at 133.71. It needs to m/c over here. It is above the c/p and range support at 130.39 and 130.00. Gasoil is testing its 5 day around 458.75 and above range support at 453.75. The contracts are holding, but have more work to do before they have a clear run at higher numbers.

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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.